Sell home or rent out while abroad

Real Estate
#1

I have an opportunity to move overseas for work and plan to live there for about 3-4 years.

The debate: Whether I should sell our primary home right now since the market is hot and put the gain directly into an index fund so it can grow? Or should we hold it and rent it out? The net cash flow will be about $200 after property management fees, rainy day fund, etc. So it’s not a huge cash flow, but we would have someone paying off our mortgage while we are gone and sell for a bigger profit later.

The estimated net gain from the sale of the house would be ~$200-250k.

#2

Do you plan to move back into this house when you come back? If so, then it’s probably less about the exact investment optimization, and more about what you want in life?

If you don’t plan to move back into this house, one way to think about this type of question is to reverse it. What if the house was sold and you had all the cash in your account and you were about to move overseas for 3+ years. Would you decide to use that cash to buy an investment property that’s barely cashflow positive an ocean away from where you live?! I doubt it. I’d probably sell it and either buy an investment property that makes more sense or invest it in index funds! :slight_smile:

#3

Thank you! Very helpful to think about it in another way… and that’s why you’re the millionaire… :wink: