Don't underestimate the hassles and worries of being a landlord.I recently moved within my neighborhood to upgrade our home given a growing family. Our previous home in the same neighborhood is roughly valued 580 to 600k. I owe about 320k on it. . I currently have a 10 year left of a 15 year mortgage at 2.5% interest rate. The mortgage insurance and taxes run about $3900 a month. I am debating whether or not to rent out that home instead of sell in order to take advantage of the low interest rate.
I think I could get 3.5k for the home. Maybe a bit more. I know I could write off the interest taxes insurance and maintenance on the place.
However I wonder whether unleashing that equity on my new home loan or the financial markets makes more sense.
I figure the home maybe appreciates 2% a year. But that is only a guess.
Appreciate your thoughts.
This deal will not be cash flow positive, and that would worry me. You would be putting more into the house.
And you lose the tax exemption.
I would generally say sell. It doesn't look like you are in a high appreciation housing market (ie a coastal city like SF Bay, or NYC).
Statistics: Posted by Valuethinker — Tue Apr 23, 2024 3:42 am — Replies 9 — Views 1109