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Updated over 7 years ago,
To hold or to sell our house???
My wife and I bought our house in 2012 for $175K on a VA loan with 0 down. With the funding fee we ended up financing $178. We currently owe $136 and could probably sell somewhere between $200 and $210 in our current market, meaning that we might be able to walk away with a $50K check at least. The other option is to keep it. A conservative NOI is around $820 (accounting for CAPEX and maint/repairs) with a debt service of $825. The absolute max we could probably rent for is $1700, meaning we will be very close to breaking even. The house was built in 1994 and has the original AC, water heater, furnace (worried about that stuff in the next 5 years or so as well as a paint job on the outside eventually). Has a new roof that insurance put on in 2012. We are at a point that we would make around $5,000 per year in equity and $5,000 in depreciation. However, especially in the first couple of years, I don't think we will make much in cash flow at all (after setting aside $150 per month for CAPEX and maint/repairs). So, I guess my question is whether I should keep the house and rent it or if I should sell it, take the cash, and maybe buy something else. I feel like we are just barely on the line of this being a good decision, but I wanted to get other opinions. We are moving to Japan this summer, so anything I would buy would likely be purchased from out of state.