Hello! I had some questions regarding if I should sell my old home or rent it out. Here are some pertinent facts. The home is in California. I upgraded and moved into a bigger home I paid cash so I do not owe anything on the new home. If i put $500K in a high yield savings at about 4.40% I can earn about $22,000.00 in interest with no hassle of tenants ($29,000) wouldn't that be better?
I greatly appreciate the input and feedback
- I am single, head of household
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old home:
- purchased home originally for $255,000. It is now worth approximately $575,000
- I owe $80,000.00 @ 2.75%
- rental annual net income: $29,000.00 (includes HOA/insurance/melloroos)
- City does have rental restrictions (no fault eviction must pay tenant 2x rent to leave)
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How old are you? What country do you live in?
- 37, California USA
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Are you employed/making income? How much?
- Employed, total combined income of $150k to 210k/year (side income is real estate sales and military reserves so varies). I am 12 years in at local gov, I plan to retire there and work for DoD contractor after.
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Savings
- I have approximately $300k in savings/retirement/roth
- Son is 13, I have his college fund all completely setup and he'll be able to go to school with no debt if he decides to
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Any big debts (include interest rate) or expenses?
- no big debts besides $80k owed to home
Submitted June 10, 2024 at 02:18AM by pwrsteve https://ift.tt/NIndhyk
