Case study: Considering our options. Sell SFH & get back into rental property?

[FrozenAssets]

Current SFH:
Market Value:  310K
Original Purchase price: 259K
Original Mortgage Amount: 237K
Interest Rate: 3.75%
Mortgage Term: 30y
Term remaining: 29y
Amount remaining on mortgage: 232K
Gross Rents: n/a
Principal and Interest (the P&I of your PITI - should match with the above info): 1088
Taxes and Insurance (the T&I of your PITI): 395
HOA costs: n/a
Deferred maintenance notes: n/a
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.): nope

Former landlords, we had a four plex and a duplex, sold both when our second child was born in 2006. Bought our current home the same year, numbers above reflect a refi last year.

We like this house, but don't love it. Pros: close to husbands work (<2mi), bike/walkable in the summer, access to multiuse trail system from our backyard, quiet culdesac. We've done an energy audit and upgraded the furnace, put in all new windows this summer.  It's more space than we need (2400 sq ft) for our family of 6. Cons: tiny city lot, very close to nosy neighbors, high utility bills, it's a lot of house to keep clean, and the mortgage, while comfortable, is our largest expense and we'd love to lower it or go back to having tenants to help.

We're considering a smaller family home with a larger yard for gardening, under 250k, or a duplex. Average single family homes in the area are $375k, and duplexes we've been looking at are around 450k+.  The rental vacancy rate is <1%.

So. What are we missing, or what do we need to consider that isn't obvious?  We have 4 kids, ages 12-1, so we're still muddling through a bit (lot) of baby brain fog.

[Bearded Man]

Totally for the duplex or other multifamily. Looking at doing a duplex myself.

[SunshineGirl]

I think there's no harm in looking, and making a move when the right thing shows up. I know for us, my husband and I moved a lot before we had kids as we built our mini real estate portfolio, then bought what's turned into our "30-year home." I do love the nieghborhood, etc., but we could bank a lot of cash by selling and moving somewhere else. However, our kids are major homebodies and are VERY proud that of all their friends, they are among the very, very few who have never moved. I never would have imagined the feeling of stability that staying put has given them, but it's a hard thing to put a price on. (We probably should have bit the bullet and moved anyway.)

I guess my point is moving while they're young like most of yours are would have helped in our case - by late middle school, they protested whenever we floated the idea.

[Bearded Man]

I looked at a duplex yesterday. The thought was that for what I was looking at buying it for, I could live there for free. But while visiting the unit yesterday, I was immediately reminded of my Seattle apartments. I could hear my neighbor open their drawers, etc.

Funny thing is, I lived in the same apartment for 10 years and never heard my neighbors at all. Must have had some actual insulation.

[FrozenAssets]

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[Kouhri]

I think there's no harm in looking, and making a move when the right thing shows up.

+1 I completely agree, if you have the equity to potentially make a move look around and see what's out there. Your current setup sounds pretty sweet so your not under any time pressure and can wait for the right property to come onto the market in your area. Also, seeing as you can wait for a real gem hopefully you can avoid the family resistance like SunshineGirl described, and instead be 100% behind the move. (Wishful thinking? )