I live in a house I own in the suburbs of Sacramento, CA. I accepted a job which will move me to the suburbs of Salt Lake City, UT. For the last week I have gone back and forth on whether I should sell the house or rent it out. I believe all the relevant information is as follows;
House Information
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1650 sq/ft
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3 bed 2 bath
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Location is a 10/10.
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Best school district around
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Located in the middle of the street with Elementary school and park at end of street
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Less than 10 minutes from Mall, all the major shopping and restaurants and multiple Gyms and the Hospital
Mortgage Information
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$180,000 left on Mortgage
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$1474 monthly payment ($984 principle/interest @4.25% + $68 insurance + $415 tax)
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My potential real estate agent values the house between $410K and $440K
Property Management Information - Looked at and met with a few
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Rent house for $2000
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To fill vacancy will cost 50% of one month's rent ($1000)
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6.5% monthly expense when rented ($130)
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Locked into 1 year contract
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More for evictions or when house needs work done
Concerns & Misc
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If I sell now my understanding is that the profit will be tax free
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If I were to rent and sell after a few years I would owe taxes (which a rough estimate puts it at $50K)
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Real estate agent suggest 2.5%/2.5% costing about $20K to sell
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The bank approved me to buy a house for up to $450K in Utah with a 20% downpayment. ($360K loan)
This would be my only rental property. If I rent I think I will be left with over $3K a year to deal with issues that come up with the house. I'm having a hard time weighing the benefits of renting vs selling in this case. My Father owns property in the Phoenix, AZ area. He suggested selling this house and using some of the profit to leverage a property in AZ where property tax is much less. If I were to put it all in the stock market I would mostly likely invest it all into VFINX. I'm looking for any insight or help to understand and identify if one option is a better investment.
If there is information I have left out that would be helpful please let me know. If I can do anything better to read/format the information please let me know. If I'm breaking any rules or this would better belong in another sub please let me know. Thanks and I appreciate any and all help.
Submitted February 20, 2017 at 10:26AM by luckyalphex http://ift.tt/2lnc3YG
