I bought a single family home in 2010 to live in with my wife. It is a 3br, 2bath 1300 sqft located in a nice neighborhood near Irvine, in Orange County, CA. We paid $480,000 using $383,000 from a 30 year, 4.75% fixed loan. I refinanced later that year to 4.25%
We lived in the home for 1.5 years and then I took a new job as a diplomat, stationed overseas or in Washington DC for the rest of my working life. We know we will never live in this home again, and I have other ties to CA so I don't need the address to maintain my state tax benefits.
When we left in 2012, we found a property manager and eventually a renter, and have rented it ever since. Our first renter paid $2200 per month and stayed for 1.5 years, and our new renter pays $2450 and signed a two year lease. We had about 2 weeks of vacancy in between. The rental demand is pretty high in the area.
I constantly consider selling the house, since it holds about half of our net worth, is a headache from time to time, and doesn't generate much income. If I sold it I would put the money in mutual funds and other low effort investments. I would appreciate some analysis from you experts. Should I sell or keep renting? Here are the details in summary:
Market Value: Zillow says $580,000 now, I think between $550,000 and $600,000 is reasonable.
Original Purchase price: $480,000
Original Mortgage Amount: $383,000
Interest Rate: 4.25%
Mortgage Term: 30yrs
Term remaining: 25yrs
Amount remaining on mortgage: $352,000
Gross Rents: $2450/month
Principal and Interest: Current P=$630 I=$1250
Taxes and Insurance: Taxes = $6,000/yr, Insurance = $600/yr
HOA costs: $650/yr
Other expenses: $125/month in property manager fees, $35/month for a gardener
Deferred maintenance notes: nothing major
Other notes: The house is in a desirable neighborhood with fairly strong sales in the last few years. The interior is modest but not updates.