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alexm2816 t1_jadznwe wrote

What is the house worth?

What is market rent on the home?

Have you considered your own skill and ability to manage a rental property as a new father? I have a 1 year old and a busy work/personal life and balancing one home is rough let alone a 2nd and tenants.

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ComfortableLeg8747 OP t1_jae0sy8 wrote

Recently appraised at $425k. Could comfortably see selling quickly for $400k (but who knows)

FMR is ~$2400 for the zipcode.

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Third question is a thinker...I think I'm willing to put in the work if it's what is best for my family. However I understand that I don't fully understand yet what the implications of having a new born will be.

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alexm2816 t1_jae2qzr wrote

I've heard of worse. I'd talk to a manager about their costs to understand what you're up against.

Frankly cashflowing $1000-1250 a month with optimistic occupancy rates assuming you do all the work on that kind of market exposure is still a little heavy for me heading into your life phase but I would understand why someone would do it.

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blahol8900 t1_jae2w8f wrote

Which state are you in? Landlord/tenant laws would significantly affect my answer to this questions.

Market rent is $2400 minus payment of $2100 puts you at $3600 per year before maintenance expenses + tenant turnover expenses. I could easily see this evaporating to $0 with those in mind.

You’re also confident that you have $70k of cash equity in house which, conservatively invested will net you $2,100 of income within headaches.

Also the fact that you can utilize the primary residence tax deduction (once every two years) and basically walk away with a tax free gain of over $70k (depending on improvements made, etc).

Appreciation is what you’re giving up hard to predict / peg.

On the flip side: you could rent it for a few years and then 1031 exchange it into a better neighborhood if that’s your main concern.

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