Looking for some advice on whether to finally rent out our home, and buy a new place, or just sell, or invest the proceeds.
My wife and I own a 4 bed, 2.5 bath townhome in a nice area of San Diego County. We only owe about $75k on the mortgage, and could pay it off, but the interest rate is 2.3%, so I’m told it’s a bad idea. Mortgage is cheap- about $1900/month. Home is worth around $700-750k, and only 10 years old. It was new construction when we bought it. Property taxes are about $7k, and HOA is $330/month.
We have about $200k saved, and are looking to buy a home in more central San Diego, say around $1M-$2M. We could rent out the townhome for about $4k a month. My wife and I make about $500k, so we could probably afford both mortgages, even if we have issues collecting rent.
Historically, I’ve been against being a landlord and renting out. I prefer to invest in the stock market, HYSA, things like that. It seems like less risk.
However, several friends are pushing me to rent out, telling me it’s worth it, especially for tax purposes. Ideally, it would be nice to keep the townhome for our children, down the road.
On the other hand, California is very expensive, and I’m not sure the ROI is worth it.
Any advice would be appreciated. Thanks!
Posted by Standish37
2 Comments
Do what you know. Sell and invest in the things you like. I personally would keep the house as a rental.
Keep it as a rental. 20 years from now you will thank you.