I moved out of the home 1.5 years ago and have rented it for 14 months. My renters are moving out June 1.
House will sell for about $170,000 ($157,185 profit)
I owe $44,700 on a LOC at 2.99% which must be paid if I sell. If I keep it the LOC will expire at the end of 2017, and will need refinancing with costs and likely higher rate. I pat $500/month now and that would take 101 months to pay off at that rate.
My rent was $1,250, and may get as much as $1,300 now, but will likely loose the month of June for income.
Taxes $1,911
Insurance $829
If I keep it I will likely put $4,000 in a new AC unit within 1 year, other than that it is in nice shape and hasn't needed much upkeep. It does have hardwood floors throughout that may need refinishing soon. New kitchen with nice cabinets and granite counter tops. Both bathrooms new.
My issue is that I want to uncomplicated my life and owning/renting this adds to my duties, although once I rent it out, my complications would not be reduced by much. It's getting it ready for the next family and the selecting of tenants that gets to me. I have another rental, plus I maintain our primary house, cars, bikes, boats, etc. and work full time as well as raise three children.
On the other hand if the money from renting is good I can retire earlier of course. I just need to find a balance.
I would be required to payoff the LOC, but then would either invest the remaining $112,500, or pay it towards my current mortgage at 2.85% and reduce that loan interest by $42,100, and reduce the loan to 6.3 years vs. 13.5.
I'd appreciate some insight. (BTW - I went through this exercise over a year ago, but had great tenants thrown in my lap so I couldn't turn that down. I always thought I could sell after a year if they moved out)