Newbie needs help - Rental vs sale

[Matt Goldstein]

I moved into a brand new home in November of 2019. I bought at $238,400.

I have decided to start investing and am planning on moving to North Carolina in the next few months.

My current mortgage is at 4.375 and with taxes and insurance, I am paying $1547.75 a month.

I currently owe $185,000 on the loan.

My question is, am I better off waiting until I am moving, probably in March and sell for between $250-270K or am I better refinancing at 2.75% which will bring my monthly to around $1250 a month and renting? Rentals for 5 bedroom 3 bath in my area are around $1900-$2,000 a month.

[Steven Griffith]

@Matt Goldstein

If I were in your shoes, I'd refinance to 2.75% and keep the asset. 2.5% if you can find it. Then, I'd get a HELOC while the home is still my primary for the highest amount I could find (I've seen 90% LTV advertised on primary homes) before moving. Then I'd rent the house for a rent that can cover the HELOC payment if fully drawn and mortgage. If you can rent the house for 2K, and be $750 in the green before Capex, vacancy, etc, then I'd do so. Use the HELOC to access some of the equity and find another rental, BRRRR, whatever your preference is. But that's just me. North Carolina has some great, but competitive, markets. Good luck!