These payments are higher than I pay for a home with a pool and without solar.

We purchased the home on 02/11/2022 for $196,000, invested $42,000 in renovations, and sold it for $369,000 on 05/05/2022.

My current primary ( scenario 1) Keep the primary for the life of the loan ( current rate is 4.5 so i dont see my self refinancing anytime soon)current home value 1,150,000Loan amount 935,000appreciation estimate 5% per year after a 28 year hold and the house is paid off I would have a house worth 4,312,000$my current mortgage is 6125$ ( piti) included My second option( scenario 2) Sell the house, walk away with $150 ,000 ish in hand and put that into a low cost index fund Rent a house elsewhere for about 3000$ ish and take the extra 3000$ im saving everymonths from not having to pay my mortgage and puting that money in the index fund as well I ran the numbers on both of these scenarios and doing what I mentioned above would break even at about 28 years meaning my stock account would be worth 4.3 million just like my house would , but the only is that holding a house for 28 year would mean 28 years of property taxes, loan interest ,home insurance and repairs etc whick I calculated to be about 1,200,000$ at minimum which raised my eyebrows to say the least Also i understand that each of these options ( stock market vs real estate ) will have there tax consequences ( long term capital gains) so any thoughts on that would be appreciated as well.  

So while every market is different and $4500/mo in rent is nice, are you spending a lot of money to have a less valuable property, versus spending that same $400k (or less) to do a nice renovation and keep it single family home and sell it or rent it out as a nice single family? 

I’m really close to getting a subject to on a home.

The 1% rule isn't relevant for renting your current home.

Purchase price: $38,000 Cash invested: $48,000 Single family, Home in an older established neighborhood needing complete updating.

Did the entire job ourselves because we had to in order to have a home to live in.

My first Detroit rental was a S8 occupied home in 2019.

They may be thinking about the qualified vs nonqualified use of the home and either taxing the entire gain or a portion of it.