Should i sell or rent out a house in South Bay Area?
Should i sell or rent out a 1.7$ fully paid house in South Bay Area? I paid 500k for it in 2011 so if I sell I will never be able to buy a house here becase of CA propety tax insanity. I decided I want to move out of Silicon Valley but cannot decide how to proceed with the house.
I would hold and milk the sweet sweet rental cash flow.
Isn't tax free money just the best!?
Is that rent money tax free?
Sell, you don’t want to get into property management, especially if you won’t be local
I'll take it off your hands right now for 1.2$
Get a good property manager to manage it
If it were me, I'd rent it out for a couple years before deciding to sell. Just in case you decide to come back. Or if you find you're ok with property management. Or whatever.
Rent out but hire a property manager.
Take out a new $1M mortgage at 2.5%. Put the cash in the stock market. Profit.
Cash out refinance and buy dividend stocks. Propery management, even remote is not as hard as you think if the house is not a complete trash.
Rent it and ride out the market trough. You didn’t mention the city but given the $1.7m price tag I am guessing it’s in a good but not very posh location, which makes it an attractive sell. Right now the market is down for pretty much most of Bay Area so unless you need that cash now, you should rent it for the next few years till the market swings up again.
Thanks for the advice! The house is in Sunnyvale but I wonder if the prices will go up anytime soon.
Wait for 2-3 years if you can afford to have that cash remaining illiquid for a while while getting a small amount of return on it from rent since the property value will appreciate given your location is central to the valley. If not, then cash out now.
Rent if you intend to keep it long term. I’d suggest you should.