Hey there! So, let me break it down for you. We snagged our Atlanta crib back in 2018 for around $500k. Fast forward to now, and it’s valued at about $750k, while our mortgage sits at $340k. Lucky for us, amidst the chaos of COVID, we managed to refinance into a sweet 2.5% 30-year mortgage deal. Our monthly mortgage, including escrow, clocks in at $2300.
Now, here’s where the plot thickens. If we were to rent out our humble abode, we could rake in roughly $4000 a month, which is a cool $1700 above what we pay for the mortgage. The house is still in pretty good shape, having had a few upgrades like new appliances and a fresh coat of paint since we moved in. So, maintenance should be a breeze if we do decide to go down the renting route.
However, we’re gearing up to make a move to a neighboring state, and we’re stuck in a dilemma. Should we sell the house or rent it out when spring rolls around? The current real estate market doesn’t seem too favorable for selling, and with the positive cash flow and that low mortgage rate, renting seems like a no-brainer.
But here’s the kicker: having a hefty $400k tied up in equity has got me thinking. What if we could invest that moolah in the market instead? So, my question to you all is this: has anyone else been in a similar situation? And if so, any advice on whether to sell, rent, or maybe even rent out and pull some equity out through a Home Equity Line of Credit (HELOC) or some other savvy move?
I’m all ears and would really appreciate any insights or experiences you can share. Thanks a bunch!