Hi all,
Looking for some advice / what would you do commentary.
Context:
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Bought a single family 2BR/2BA, ~2000 sq. ft. primary home in Phoenix AZ in 2020 for 390k, put 40K down and about 50K into various renovations. Mortgage is at 2.85% rate and monthly payment of $1900.
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I moved out in 2021 after 1 year due to my wife needing to move for her work back to a HCOL city, and easily found a stable renter soon after.
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Currently rent AZ home for $2500, and about to renew to $2800/mo. I put all proceeds in a separate checking account, and hire a property management company that does everything. Currently net around ~$550 a month. I own no other rentals.
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I can sell the house for $600k – $625k easily (maybe more) today, netting ~$250K, tax free, due to qualifying for the partial exclusion of gain IRS rule.
Would you sell or continue to rent out? Perhaps a HELOC? I’d likely need to invest in a new AC / Roof in the AZ house sometime in the next 5 years. I would use the money to invest in the stock market , pay for some renovations (~100K) in a house I am under contract in for my primary home, in the NYC area.
Any advice? Thanks all!