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Updated over 6 years ago,
Sell or Rent?! Help me analyze
Hello everyone, I would like to get a few opinions on whether I should sell or rent a house I currently own. It is a single family (3 bed, 2 bath) built in 2013, in a great neighborhood close to a military installation.
I owe $139,000 and the house appraises for $169,000. I could sell tomorrow and get approximately $14,500 after closing cost and brokerage fees. Initial purchase price was $149,000. It was a 0% down VA loan, lived there for 4 years and rented it last year (the current tenant is moving out).
or
I could rent it all day, any day for $1350. The mortgage is $950 (25 years remaining @ 4.25%), HOA is $35, lawn care is $30. No management fees, I am local and have already rented it for 1 year. Occupancy is not an issue, it rented the first day on the market (had to take down the ad after just a few hours due to overwhelming responses). The current tenant is moving out so I am at a crossroads. Total expenses averaged $1055/mo last year (including repairs and maintenance).
I not not sure how to analyze this rental unit. Do I calculate it at current market value and say the $14,500 profit from the sale would be the cash down? Or should it be calculated at the original loan terms?