[USER]

Hi Team, We are a family of four, with two kids (aged 9 and 4), currently living in southern Ohio. I’m 42, and my wife is 39. We are planning to relocate to Portland, Oregon, to support a family member.

We purchased our current home in 2020 for $400K with a 30-year mortgage at 3%, and it has since appreciated to around $700K.

We love our neighborhood, especially its great school district.

Additionally, we own a rental property valued at $350K, with $200K left on the mortgage. It is leased to a reliable tenant for the next 1.5 years.

At this point, we view this as a temporary move (2–3 years), though there is a chance it could become permanent.

We have visited Portland a few times and enjoy the city and surrounding nature—except for the dark winters! Our plan is to rent in the suburbs initially and take our time before making any decisions about buying.

CURRENT MORTGAGE & HOUSING OPTIONS
Primary home mortgage balance: $300K
Monthly mortgage payment: ~$2,200

Expected rental income (if rented): ~$3,200–$3,500
I’m exploring the best options for our current home and would appreciate any advice, especially from those who have navigated a similar situation.

OPTIONS UNDER CONSIDERATION
RENT OUT THE HOME
Keeps the option open for us to return to the same neighborhood.

Provides positive cash flow, covering mortgage and expenses.

SELL THE HOME & INVEST THE GAINS
Selling now would allow us to lock in gains while the housing market is strong.

We could reinvest the proceeds in the S&P 500 or a high-yield savings account (HYSA).

SELL & PURCHASE RENTAL PROPERTIES (REALTOR’S SUGGESTION)

My realtor, a savvy investor with multiple properties, suggests selling our home and using the proceeds to buy two rental properties (~$300K each).

He has potential tenants lined up, which could provide immediate cash flow.

My wife prefers this option since two rental incomes could be better than one.

I’m hesitant because while this option diversifies, it carries more risk than simply renting out our current home.

Would love to hear any insights, recommendations, or experiences from others who have faced a similar decision. Your input would be greatly appreciated!

[Bob]

Are you sure you will break even if you rent out your house? If you didn’t specifically purchase a property with the intention to rent it out, rarely does it make sense to rent instead of sell.

Don’t forget all of the expenses.

There are more expenses than just the mortgage payment, even if you do escrow taxes and insurance. Deferred maintenance is not profit.

Although if you think this might be temporary, it might be ok to carry a loss for a year or two. Don’t forget that if you sell, you get the $300k gain tax free.

If you rent it for too long, you lose that tax break.

Will you make enough renting to offset the loss of that tax break?

[Ryan]

Save some for the high taxes. Portland has the highest marginal tax rate in the country. And the lowest estate tax exemption.

It’s tax hell and people are leaving in droves.

[Nikki]

Hi, we moved to Shaker Heights from the suburbs of Portland so feel free to message if you have any specific questions.

We lived there for 45 years

[Jule]

Having to lose almost $50,000 on closing costs to sell doesn’t not make it appealing.

I’d rent it and once you know for sure that the move is a permanent decision, then sell it.

[Jennifer]

Most people I know wish they bought a home earlier instead of never. I have property out of state where I use a property manager.

I’ve never been to the house and they even dealt with evictions. Your numbers look like they could afford a property manager and still cash flow.

You have enough personal funds you don’t need to sell the house.

My hesitancy on buying two cheaper homes is that they are likely going to be in worse neighborhoods with not great tenants = more headache.

Location is more important to me bc appreciation also grows faster. Would you do a 1031?

Might be hard to get two houses in that time frame
Good luck with your decision whatever you decide.

[Tony]

I’d keep the house and rent it out until you determine if your move is temporary or permanent.

The housing market isn’t dropping any time soon due to the supply issue, and you’ll never be able to buy in again at that home price and at that rate in that area.

Your rent will also help subsidize your new move.

Of course your realtor is advocating for you to buy more property! He gets the easy commission and you assume all the risk.

If it was such a great deal he’d find a way to do it.

[Yiyin]

sell if the move becomes permanent. And totally agree w the comment about the realtor – that’s the first thing that came to mind: he gets triple commission for his proposal (selling 1 and buying 2) compared to no commission with option 1!!

[Cari]

Rent for 2 years and asses at that time if you want to make a permanent move. I’d hire a property manager (do not self manage a property across the country).

I wouldn’t sell if you might move back in 2 years and you have a great interest rate and you love your home and community in Ohio.

I live in the PNW and you really need to stay for a winter or two to see if you can handle the dreary winters here.

I’ve been here for 20 years and can handle it but there are many who can’t.

[Alicia]

I would honestly go with your first option, rent out your primary home. You have an amazing rate in a wonderful area you love and as you said, you don’t know if it’s permanent or not yet.

If you plan to stay long term in Portland, then I would personally explore selling at that point.

Keep it!

[John]

Keep the house (and the 3% mortgage) and rent it out until you determine if your move is temporary or permanent.

By the way did you know 48% of mortgages are assumable, meaning that if you were to sell it, the buyer can pick up the benefit of the 3% interest rate.

Most realtors do not want you to know this, because it disadvantages them.

Buying 2 properties in Ohio when you’ll be moving to Portland? The profits will go to the leasing agent and the management.

Absolutely NOT!

[Jake]

I would sell the house because renting is is terrible numbers from what you posted and a tenant can cause you lots of issues. The return isn’t worth the risk.

If you don’t return to the home and decide to sell it after you rent it you’ll have new issues and depending on the time frame you’ll lose the $250k tax free gains you’d have if you sold it now.

So, selling now, assuming your numbers, you have $50k taxable long term capital gains.

Unless you’re eager to enter the real estate world and you have done your research on this I’d stay away. Your post doesn’t leed me to believe you have.

So that leaves option 2. Which is probably the lowest risk and should leave you with the most options later since you’re in a transition that might be temporary. The money will be accessible.

Edit: your comment about option 3 being lower risk than option 1 I disagree with.

If you want to have rentals you buy rental property that has good numbers. Your house sounds like very bad numbers. Risk in my opinion factors a few things, but especially the missed opportunity.

Option 1 keeps your house, adds tenant risk, and doesn’t likely return nearly what the other options do.

Second option locks in tax free gains, which is valuable, then assume typical return based on your choice. Option 3 might be a higher return than the others and locks in tax free gains, but without experience it’s definitely higher risk than option 2.

Option 3 could be executed with $700k very differently as well. Buying far more properties in a better area, accounting for a property manager, and potentially buying as much as $2 million worth of properties for a higher cash on cash return, utilizing debt to increase the overall income production.

At this amount you’d still hold about 35% equity, which isn’t bad at all.

Though this option doesn’t leave you with the money available if you decide to buy for yourself later.

Options 2 and 3 are both good, but it’s very dependant on you personally which you follow and how you execute.

[Dave]

Glad you’re in a position to move across the country and help out a family member – good for you!

Aside from financing and equity stats, you didn’t reveal much about your financial situation. Do you have to sell or rent your existing home to make the numbers work?

Do you enjoy being a landlord? Do you think that’ll change once long distance is factored into the equation?

You have 2 young kids and sound like you’ll be helping out an extended family member – anything that could increase stress to an intolerable level isn’t worth the $ in my opinion.

[Author]

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