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- Should I sell a 2nd home, or rent it out? 10 answers
My wife and I bought our current house about a year ago. We love it. The location is great with many new projects coming to the area, including a train station, a shopping plaza and a marina by the Potomac River.
I am a dentist. This year I bought a practice in downtown Washington DC. This is considered my small business investment. It's a good 45 minutes to 1 hour commute each way. I am pretty energetic but I wake up very early and I am feeling the burnout. In a few years we might move closer to my office and it will be closer to where my older son will go to college if he goes locally.
I have an FHA ARM on my house that's 3.2%. I paid around 5% down and the current principal is around $540K. I pay around $3400, including interest, PMI, etc. My house value went up to around $600K but it can rent for only $3,000 to $3,200 a month. I am not worried about finding tenants. I am more concerned about a negative cash flow.
I know how to run a dental practice but not real estate. It's likely that I will hire management company until I learn more about this type of investment.
I hope to be working in my practice for the next 20 years. By then, hopefully this house is paid off and I can realize a good passive income.
Do you think that I should rent or sell my current house?