All Forum Posts by: Ian Covington

It will really depend on your situation. Even if you plan on managing it yourself, have a property manager or two take a look at it and get their input how well it would rent. If it is expected to rent well and you are financially able, keep the debt and let the tenants build your equity. Consider refinancing with a small down payment to boost cash flow. It may make sense to refinance just before moving to take advantage of better primary residence loan options.

My first home was a 0% down VA loan that I lived in for several years. After taking a new job I was forced with the choice to sell or rent. I refinanced it with a little bit down and now enjoy a 36% cash on cash return even after the property manager's cut.

If I was in your situation and the property represented consistent income, I would hold it. You'll gain incredible cash flow with a very low risk introduction into real estate.