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Updated almost 9 years ago on . Most recent reply
Keep renting (possibly refinance?) or sell?
Hello,
I finally jumped into real estate investing last year and it's been exciting! For no prior experience I feel like my first deal has been going ok :)
I currently own and live in a SFH while renting out three of the bedrooms. I may have to move this year unexpectedly, but would be staying in the same town. I am debating between selling the property or renting out my room and keeping the property (I'd prefer to keep it)
Property Information
- 4.25% interest rate
- $212k left on mortage
- Was originally 5% down, 30 year conventional. Payed $226k
- Located in Salt Lake City, UT. Currently it's a sellers market, with most homes being scooped up in under two weeks
My Questions
- Are there any bad, or missed, assumptions I should be aware of?
- My math says I'm break-even on the property meaning my gain is the equity growth and the tax benefits. Am I crazy to keep it in this situation?
- If I sell, I'm not sure I'd get much more than $230k-240k for the home. My back of the envelope math means I'd basically break-even on the investment. Does that seem right?
- I've also considered refinancing and pre-paying the PMI (an option I didn't have last year because of lack of funds). This would increase monthly cash flow, but not sure if the costs would be worth it.