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[quote=Anonymous][quote=Anonymous]Assuming your question is a financial one...

Assume you net $300k on the sale.

You'll receive $26,400 in rent.

You'll owe $5k in taxes. Assume you'll need to pay $3k in expense per year. And assume you'll have 0% vacancy rate.

You'll net about $18k/year on an asset you could net $300k if sold. That's a 6% cash on cash return under ideal circumstances.

Or you can get a 5%+ return by parking the $300k in short term treasuries -- risk free and no hassle of being a landlord.

Or you can get more than that in other marketable investments.

Sell it.
[/quote]

To play devil’s advocate:

SELL: 
Are you really getting 5% on $300K ($15K year 1, $16K Y2, etc) if you turn around and use the $300K toward a down payment on a $600K Home? Your new PITI will be at least $3000-$4000/mo

KEEP:
If the house is in a good location, you can count on rent increases over the long term. If you net $18K/yr for Years 1-3, then get to $20K Y4-8, etc. you have a nice steady income stream. Use a property management co if you’re willing to pay the fees.

If you buy a $600K house and put $100K down, your PITI will be in the $4000-$4500 range. Could cash flow from your rental property offset the higher PITI?[/quote]

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