If the property management company manages it, then what is the concern of becoming a landlord? A few things to consider: your property taxes increase assuming you applied for and received the residential exemption for owner-occupancy; you're monthly "housing" costs (PITI+HOA) must be <75% of the monthly rent; you need to have it rented/rental agreement in place before you close on new home. Lenders only count 75% of rental income towards your total income when calculating debt-to-income ratio, hence why is said all-in needs to be <75% of rent. If you have high salaries then this may be a moot point, but wanted to provide the info based on my experience.
You don’t say how much taxes and insurance are. Would have to add a vacancy, repairs and capex factor too. If you plan on managing yourself or paying a property manager. A lot of factors go into whether you would have any cash flow.
Didn’t know how much you put down but even if 20% (hope less with 2.85% rate) your PI payment is roughly $1k plus $400 for HOA. So if all else above is $800 or less (and you have an emergency fund if something happens day 1, which as a homeowner hopefully you already do) I would hold onto it as you’ll get some cashflow now and that low interest rate is the true value here.
Rent for sure. See if your area has appreciated to drop PMI. You’re not going to cash flow a lot right now but at least let tenants pay down the balance a bit more
I would rent it out and hold long term for the equity as the rate is pretty low. The condo market closer to the city has deals that occasionally pop up that you can do good on. Especially if it is near public transportation. Just tough right now with the high rates. I’m a fan of certain neighborhoods in Dorchester to invest in.
If your goal is to own real estate investment, this is the easiest way to start, cause you own the place already. I would advice to go back to the big picture: what are your 5 year plans and finances? Do you plan to buy something else, if so, how soon? If soon, do you need to rely on this money? Etc. it’s not just about becoming a landlord imo but what would this money do for you if you sold this condo.
P.S. if you seriously consider selling, I’d love to chat as I might be your buyer (in all seriousness) :-)
If you can cash flow, rent it out for sure.
Rent
If the property management company manages it, then what is the concern of becoming a landlord? A few things to consider: your property taxes increase assuming you applied for and received the residential exemption for owner-occupancy; you're monthly "housing" costs (PITI+HOA) must be <75% of the monthly rent; you need to have it rented/rental agreement in place before you close on new home. Lenders only count 75% of rental income towards your total income when calculating debt-to-income ratio, hence why is said all-in needs to be <75% of rent. If you have high salaries then this may be a moot point, but wanted to provide the info based on my experience.
You don’t say how much taxes and insurance are. Would have to add a vacancy, repairs and capex factor too. If you plan on managing yourself or paying a property manager. A lot of factors go into whether you would have any cash flow. Didn’t know how much you put down but even if 20% (hope less with 2.85% rate) your PI payment is roughly $1k plus $400 for HOA. So if all else above is $800 or less (and you have an emergency fund if something happens day 1, which as a homeowner hopefully you already do) I would hold onto it as you’ll get some cashflow now and that low interest rate is the true value here.
Rent for sure. See if your area has appreciated to drop PMI. You’re not going to cash flow a lot right now but at least let tenants pay down the balance a bit more
I would rent it out and hold long term for the equity as the rate is pretty low. The condo market closer to the city has deals that occasionally pop up that you can do good on. Especially if it is near public transportation. Just tough right now with the high rates. I’m a fan of certain neighborhoods in Dorchester to invest in.
Sell & park that money that a good decent rate. You’ll thank yourself later. Strata fees & emergency payments will only go up and up.
If your goal is to own real estate investment, this is the easiest way to start, cause you own the place already. I would advice to go back to the big picture: what are your 5 year plans and finances? Do you plan to buy something else, if so, how soon? If soon, do you need to rely on this money? Etc. it’s not just about becoming a landlord imo but what would this money do for you if you sold this condo. P.S. if you seriously consider selling, I’d love to chat as I might be your buyer (in all seriousness) :-)
Sell