Quote from @Dave G.:
@Jared Ladia I'm not usually a proponent of keeping a primary rez as a rental after you move out, but I might be inclined if I were you depending on some of your circumstances. Some questions/thoughts:
How much would it rent for? Is $985 PITI? What kind of condition is the property in? Will it need a lot of maint work in the coming 1-2 years? After moving, will you be local to the property still? This would obviously make it easier for self-managing, especially if you go the STR route.
You don't have much equity (at least as of now), and if you sell you'll take a haircut on transaction costs. For me in AZ this would be about 8% (closing costs/broker commissions). So you wouldn't have much in the way of proceeds (to me at least, maybe it's a lot to you).
If you meet the primary rez requirement (2 of the last 5 years) you could rent it out for a few years and sell before you hit that time threshold saving capital gains tax.
I purchased the house on 12/31/19. It would be at least 1-2 years before I would list it as a rental (if I went that route.) It looks like similar rentals in the area are around $1300 right now. I'm honestly not quite sure about the PITI. It was flipped and move-in ready when I bought it, so everything is new and in good working order. I have not had to do a lot of work on it, and I don't think it will need any in the coming 1-2 years. I would be moving 2.5 hours away if I did decide to move. My dad could possibly help with management while I was gone. I would be coming back to visit pretty often. I'm not familiar with the primary rez requirement. I will need to read about that.
Thanks for your suggestions!
