Hey fellow Mustachians....
I'm hoping for a bit of advice.
I have been debating for a few years whether or not I should keep or sell my house and rent....
Here's the background info:
My house is currently valued around $250,000.
I owe about $100,000 on it with about 12 years left on a 3.5% mortgage.
The real-estate in our area has not moved in quite some time as far as prices are concerned. Considering this, I could (try to) sell it, invest the money, and even at 5%, I'd bring in $7500/year on the investment.
I could probably rent a house (that won't be nearly as nice, but can live with) for about $800/month in my area (plus utilities).
A few other considerations:
- we live in a cold area. A few years ago, we converted to wood heat, so our heat expenses are minimal right now. Those are sure to increase greatly in a rental. (we've also replaced windows, doors, and insulated walls and attic)
- we have aspirations of moving to a mountainous area, so not having a house would make us more mobile to an opportunity (but I have a good job with good salary allowing us to save a lot toward early retirement right now)
- we do not live in an area where we'd benefit from renting our current house.
- taxes are currently about $3,600/year
- mortgage interest is about $3,600/year
Looking forward to hearing your thoughts.