My Grandfather passed away almost 2 years ago and left me with a fully paid home. I’ve been paying property tax and just letting the house sit with a family member staying there for free (I know, not the smartest decision). They’re moving out in July and I’ve now gotten to the point where I’m considering, either, selling or renting it out. The house was valued at $600k back in January 2021 and located in the Bay Area.
These are my thoughts:
I spoke to my broker and with $300k taken out, mortgage would be $1,700 per month. The property can rent for $2,500 – $3,000. The fear is that I don’t have experience with being a landlord but also looking for possible passive income and for the home to continue rising in value.
Not sure if this information would help but I’m the sole bread-winner with a full-time job, married with 2 elementary aged kids. Not sure how much time involved renting it out would consume.
What is everyone’s thoughts on this? Does anyone see anything wrong with the cash-out refinance and having the renters pay for the mortgage and some? Thanks in advance.