Working the mustachian muscles, my wife are I are looking to move closer to our places of employment, reducing our serious car clown commutes. Note: I posted this last week in the RE forum, but due to minimal responses, I'm hoping to illicit more responses here!
Due to the new location we are looking in, renting makes the most sense, at least for a few years until we have a family. However, we are torn on what to do with our paid off existing personal residence.
I'd expect to net $150K after selling fees if we sold or gross $1,300 monthly if we rented. Doesn't meet the 1% rule.
Option 1From a cash flow perspective:
$1,300 estimated monthly rent
-$300 - Property Insurance and Property Taxes
- $210 - Repair Fund / Reserves / HOA
- $130 - Vacancy Estimate $660 NET MONTHLY CASH FLOW
5.3% return (and having to personally manage the property)
Option 2:Sell and receive $150K net.
In this case I'd have to figure out how to invest / or hold Cash for the net proceeds if we went this route!
How would you approach this situation?
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