Hello! I'm moving into a SFH in a few months and am trying to decide what to do with my current house(LTR,STR, or sell).
Background: I purchased a 2/2 1700 SF house with a 1/1 carriage house in 2017. I live in the main house, rehabbed the carriage house and have been successfully house hacking, renting it out on Airbnb the past year.
Purchase Price: $218000
Mortgage remaining: $198000
Estimated Sell Price: $289000
Total monthly house payment(PITI): $1350/month
Option 1: Long term rent the 2/2 and the 1/1 separately:
2/2 would rent for $1300-$1400/ month
1/1 would rent for $700/ month
Factoring in maintenance/management/vacancy, LTR would cash flow ~$100... Low
Option 2: Short term rent both units:
1/1 would net $1200/ month (the average over past year)
2/2 would net $1800/ month (estimate)
This option would cash flow better, downside is market will not be back until end of this year due to COVID-19, and I would need to spend $5k to furnish the 2/2 house... This is riskiest option to me, I'm a little skittish after how the past month or two have affected my Airbnb income. Plus I'm moving 30 minutes away and in my head it won't be as easy to manage.
Option 3: Sell the house
With selling costs of ~8%, Selling the house would net me $60k-$70k in cash tax free(I've lived in house for over past 2 years). I like this option as it is cash in hand that I can deploy elsewhere.
Thanks in advance for any thoughts/advice!
