Neither Mr. PFL or I want to sell our house to fund our paycheck-free life. Instead, we’d like to rent it out and/or get roommates when we leave. A brief summary from a previous post:
Our House: Mr. PFL and I moved to our current house in October 2011.We purchased it for $430,000. It is a 3,303 square foot single-family home with 3-beds, 2-baths and a detached 2-car garage. Our house is a brick Victorian built in 1898. The interior was gutted and redone after a fire about 8 or 9 years ago. The county auditor’s newest proposed value is $468,000. Our house is across the alley and two houses north of the Condo (we literally moved across the street).
Our House is close to downtown in a very desirable neighborhood, within walking distance to the main entertainment district, professional sporting events, concert venues, a major university, and several large corporate headquarters.
The cash flow estimates I foresee are as follows:
Rent: $3,750
Mortgage/Taxes/Insurance: - $2,391
HELOC from Condo: - $250
General maintenance: - $250
Vacancy: - $300
Property Management: - $300
TOTAL CASH FLOW: $259
While these numbers are very rough, they are realistic. Our house was not purchased with the intent of being a rental property but, instead, our forever home. The possibility that we could leave for a year or two without losing money, and without losing our house, is exciting.
We also have equity in this property. If we listed it, I believe we could sell for at least $500,000. Our real estate agent suggested a list price between $550,000 and $575,000. The mortgage balance is about $323,500. We also have a second mortgage HELOC on this property with an outstanding balance of $30,000 that is paid by the rental property LLC. We are still looking at a profit of at least $150,000 if we did decide to sell.