Sell v/s Rent
Hi,
We have our house in San Jose Willow Glen neighborhood. We bought it in 2024 and it’s worth to about 2.6-2.8M based on estimates. My wife has a job change and we have to move to SoCal. Will we come back to the bay is unsure at the moment.
Since we bought it 2.5 years ago, any equity goes towards closing costs. Rent would be about 7.5k-8k based on estimates for a 5b/3ba.
Every numbers calculator suggests selling, renting we pay about 60-70k every year out of pocket. That means we are banking on an appreciation of 3% or more to justify holding.
The thought of paying six figures in closing costs and eroding any equity that I gained makes me sick. Holding it, becomes a loss making asset. Our PITI is 12.5k. The other way I see it that justifies keeping it is that if we can get 7.5k rent then our out of pocket cost comes down to 9k. 5k in the monthly difference and then 4k rental in SoCal.
Not sure what to do and if any advice please help with. We are very blessed to be in a situation where we can take the loss and be fine. I have about 30% equity in the house.