Hello Boglehead community,
I have been reading a couple of posts about people possibly renting out starter homes and wanted some feedback on my situation. My wife and I with our 2 boys are likely to move in a few years to a somewhat larger house with a larger yard. We currently have $115,00 left on our mortgage with a 2.68% rate on a 15 year loan. Our mortgage payment is only $979 a month but our total monthly payment with taxes and insurance is around $1,300. (We do not have an escrow account/we pay property taxes/insurance separately) Based on recent sales in our area, our house is likely worth 290,000-300,000. We bought it for $190,000 in 2015. Also, there is not a ton of upkeep with this house. (It's an old brick cape cod, and we have already replaced the boiler/water heater in our time here. The house is basically updated/modern)
It seems like it could be worth it to hold onto the home and rent it out and in a pretty short amount of time generate cashflow from it along with diversifying our assets.
I have been looking at single family rentals in our area and likely we could rent it out for $2,100-2,200. (I think that would be on the conservative side) As a side note, my wife has a good amount in her 401K and I work as a teacher, so I am working towards my pension along with putting away money in a 403B)
Thoughts?
I have been reading a couple of posts about people possibly renting out starter homes and wanted some feedback on my situation. My wife and I with our 2 boys are likely to move in a few years to a somewhat larger house with a larger yard. We currently have $115,00 left on our mortgage with a 2.68% rate on a 15 year loan. Our mortgage payment is only $979 a month but our total monthly payment with taxes and insurance is around $1,300. (We do not have an escrow account/we pay property taxes/insurance separately) Based on recent sales in our area, our house is likely worth 290,000-300,000. We bought it for $190,000 in 2015. Also, there is not a ton of upkeep with this house. (It's an old brick cape cod, and we have already replaced the boiler/water heater in our time here. The house is basically updated/modern)
It seems like it could be worth it to hold onto the home and rent it out and in a pretty short amount of time generate cashflow from it along with diversifying our assets.
I have been looking at single family rentals in our area and likely we could rent it out for $2,100-2,200. (I think that would be on the conservative side) As a side note, my wife has a good amount in her 401K and I work as a teacher, so I am working towards my pension along with putting away money in a 403B)
Thoughts?
Statistics: Posted by Raleigh — Mon May 27, 2024 1:01 pm — Replies 6 — Views 500