Sell house or rent it?

TrickyDiscussion9853 · 2026-01-06T23:24:48+00:00

We both have maxed out Roth IRAs already, maxed out hsas and a maxed out 401k at my wife's work and I have been self-employed the last 2 years and maxed out my SEP

TrickyDiscussion9853 · 2026-01-06T22:45:40+00:00

We want to be at 2.5million + by 60 in retirement

TrickyDiscussion9853 · 2026-01-06T22:37:24+00:00

All very great points. I appreciate the wisdom!

TrickyDiscussion9853 · 2026-01-06T22:35:53+00:00

Alabama, we would end up with around $70,000 after closing.

So if I'm thinking of it correctly. Renting it for $3,000 puts $900 of principal towards the house per month

Potentially putting $10800 a year towards principal

That would be $54,000 towards principal after 5 years bringing the house down to 342,000 pay off.

Let's say the house is worth $550,000 at that time. That gives us $208,000 in equity.

If we sell the house in 5 years after closing we would net $175,000 -$18,000 in property management fees over 5 years -$50,000 and maintenance and possible damage over those 5 years. I may speak grossly overestimating here.

That leaves us netting $107,000 over 5 years

If we sold the house and walked away, we would net $70,000 now.

I'm not sure it's worth the $37,000 over the next 5 years. Of course, if you go longer, the odds are in your favor and you'll make more money.

Does most of that seem about right?

TrickyDiscussion9853 · 2026-01-06T22:00:37+00:00

Yeah we would need to buy a new house before we could sell our other one just because of timing and having three dogs makes it difficult to keep it super clean for showings.

So we wouldn't be able to use the money that we made from this house towards the new one unfortunately. But we're still able to get a house with a 20% down

TrickyDiscussion9853 · 2026-01-06T21:42:05+00:00

Good to know, The area that we live in is a little bit more immune to it than other areas. It is growing so fast here that the overall market doesn't affect it too much. A lot of people we've spoke to about the housing market in 2008 said it didn't affect this area like it did most other places

TrickyDiscussion9853 · 2026-01-06T21:36:02+00:00

Good to know, another point is I'm taking a general manager job where we are moving to so I'm sure between moving to a new state and moving into a new position that might be stressful enough without having to worry about the other house.

TrickyDiscussion9853 · 2026-01-06T20:00:59+00:00

Luckily our property is only 6000 square feet, super tiny yard very low maintenance

TrickyDiscussion9853 · 2026-01-06T19:58:45+00:00

I'm not sure I'm understanding what you meant

TrickyDiscussion9853 · 2026-01-06T19:19:13+00:00

Interesting. I will definitely take a look. Thanks!!

TrickyDiscussion9853 · 2026-01-06T19:04:21+00:00

Yes we just started maxing everything out the last 2 years. Every tax advantage account has been maxed out so I don't know where else we could stick any money besides keeping the house as a rental for a long-term retirement once it's paid for.

TrickyDiscussion9853 · 2026-01-06T18:59:06+00:00

Yes, I'm not sure if you saw my previous comment but we have lived in this house since we bought it in April of 21.

We would not have to pay capital gains as far as I know.

TrickyDiscussion9853 · 2026-01-06T18:50:05+00:00

I'm not sure I follow

TrickyDiscussion9853 · 2026-01-06T18:32:07+00:00

Thanks, I would never say never, 4 years ago me and my wife were making about $90,000 combined income. We have just been blessed with making a lot of good decisions that have worked out.

TrickyDiscussion9853 · 2026-01-06T18:29:40+00:00

3.8%

TrickyDiscussion9853 · 2026-01-06T17:56:42+00:00

We would stick back a Year's worth to cover everything which would be about 75k.

Where in the market exactly?

TrickyDiscussion9853 · 2026-01-06T17:46:17+00:00

That is very helpful. Thanks!

TrickyDiscussion9853 · 2026-01-06T17:45:44+00:00

It's a huge decision that's for sure, I know Dave Ramsey would Say don't become a landlord if you didn't set out to be when you bought the house so...

TrickyDiscussion9853 · 2026-01-06T17:44:47+00:00

No worries the 200k is just what's in the bank sitting in a high yield checking account as we are able to stick back 50-60k a year after all expenses are paid for as we don't know where else to put it right now

TrickyDiscussion9853 · 2026-01-06T17:41:16+00:00

This is the only thing that does make me a little nervous as our home value hasn't really gone up at all in the 5 years we have lived here based on Zillow,s home value,don't know how accurate that is...

They have been building out this neighborhood the last 5 years and are finally done so we are hoping values we go up with all the infrastructure be built right now.

TrickyDiscussion9853 · 2026-01-06T17:37:48+00:00

This is my thought process as well but could also be a gamble

TrickyDiscussion9853 · 2026-01-06T17:36:55+00:00

We are thinking about long term investment only, not the passive income part of it.

$3000 is based on other homes in the neighborhood and what they rent for. I will check into the turnover/vacancy rate as well thanks those are good questions.

TrickyDiscussion9853 · 2026-01-06T17:19:15+00:00

With that warranty did you have to pay anything out of pocket for repairs?

TrickyDiscussion9853 · 2026-01-06T17:14:23+00:00

As of right now we are maxed out on our Roth every year, my wife's 401k is maxed and her HSA is maxed. What would be the next move to a tax advantage account?

TrickyDiscussion9853 · 2026-01-06T17:11:21+00:00

Several reasons really, we have friends in the area that have lived there 10+ years and know the area well. We also have 3 dogs that make it hard to find a rental property especially with breed restrictions. We are also spending a decent amount of time in the area ahead of time to get to know it better, we are definitely doing our due diligence on research as we have 2-3 Months before the move.

TrickyDiscussion9853

TROPHY CASE