I need some help sorting out what is the best move, financially, for DH and I in this situation.
I (40) and DH (41) own a paid off house worth ~$168k, 1/4 mile from a major research hospital/university. (It appreciated from $96k in 2012 when I bought it. ) Property taxes and insurance run ~$3900/year. This house is surrounded by rentals, mostly to med students and firefighters. It's a 1200 sq. ft. 2 bedroom, 1 bath, built in 1910 with a big detached garage/workshop behind it. We estimate based on our neighbors that it would rent for ~$1200+/month.
In October 2020 we purchased a new house worth $630k and moved in. Our mortgage is $2070/month, and our property taxes + insurance run ~$8700/year (we self escrow this).
Now we're trying to decide whether to rent our old house for ~$700/month profit, or sell it and invest the ~$150k we'd likely clear.
More info on our situation :
$266k combined annual salary (not including ~10% bonuses or his stock options). We both max 401k's and HSA's (we make too much for any IRA), so we take home ~$12.5k/month.
We're worth ~$1.5M, split 9% cash, 20% houses/cars, 32% retirement, and $38% investments.
Neither of us are handy, so we'd hire out any work that needed to be done, and likely hire a property management company for ~10% of rent.
My back of the envelop math, over 10 years, says that investing $150k vs. investing $700/month and then selling aren't that far off, depending on rate or return.
I feel like my emotional attachment to the old house is influencing my desire to keep it. I'm not sure how to decide. Any input here would be appreciated.