I own a 2 bed 1 bath single family home with a fenced yard in a downtown area in maryland worth about 300k. I owe ~175k on the mortgage, and my interest rate is 2.75%. My mortgage, including everything, is 1380/month, and it is currently rented for 2800/month, but I’m unsure if i’ll be able to get that much again. The job market sucks and people are feeling the pain right now. The lease ends in june and the current tenant is moving out.
I’m wondering if I should sell it and invest the money or put it towards my primary mortgage (6.5%) or keep it and deal with the work. I’m new to this (I started renting last year) and am a bit overwhelmed with having to do this process again.
Posted by Unlucky-Ad-5744
6 Comments
Find a reputable local agent and they can list it simultaneously: For Sale or For Rent.
See what offers you get.
Why can’t someone else give tours (if you pay them)? You’re making a relative killing on your investment. Let’s say even if you get less it’s still going to be good money coming in. You really shouldn’t want to give up that rate.
Holy shit. I am renting a 3 bed 1 bath and my rent is only $1825 😳.
That 2.75% rate won’t change and $1200 a net income a month while building equity is great. Full Disclosure. I am an agent in the Annapolis, Maryland area. And you can put your house up for Rent and Sale at the same time to test the market. I’d be happy to go over the options with you in more detail of you like. But that 2.75% rate is golden.
with a 2.75 rate and $1400 in cashflow every month, selling that is throwing away free money. even if rents dip a couple hundred, you’re still way ahead. keep it and let the tenant pay it down.
You have options. Start marketing the property for rent 60 days before expiration at the same rent. If you have not leased by 30 days of the original lease end date, then put it up for sale, (or for sale and rent for the last thirty if you want to keep it).
One other large consideration is losing your primary residence capital gains exemption (assuming you lived there 2 years) if you continue to rent it out over time.
Edit to add: Check your lease if it has constraints on when you can start showing the unit to future prospective tenants.