Should I sell my house now or rent my house out to Airbnb?

[Seleste]

Okay so I have a house in mid south USA. It is estimated to be worth 340,000 to 400,000. I’ll be lucky if I can sell it in the 400k range but that is also my desire. Should I sell it in today’s market? I heard housing market is at its peak right now. Is it possible to sell for 400k when it also can sell for 340k? If I can’t get 400k or very close to it I don’t know if I want to sell my house.

Should I rent it out to Airbnb instead? I think I can make around 40k to 75k renting out my whole house to Airbnb a year.

It is 2,200 sq ft and 4 bedroom, 2.5 baths.

I still have 120k mortgage on it. So I’m not sure if it’s better to sell it or rent it out for Airbnb.

I heard the housing market will go down soon due to the after effects of the pandemic and economy. However I really want at least 400k for my house. If I don’t get 400k or close to it I won’t get what I wanted for a cash sale.

If I rent it out for Airbnb I’ll have a salary for as long as I want to rent it out. And won’t need to work as hard since it can provide me with a salary I can live off of. However if the housing market goes down, I’ll be stuck with my house with depreciating value.

I want to move to 5 hours away so if I sell it, I’d want to rent another house in Texas (5 hours away from my current place) and do Airbnb on it. The thing is, renting another house might be costly in today’s market too. So I will make less renting a house for Airbnb as opposed to keeping my house and getting more profit for Airbnb.

Is it worth it to sell it now or should I continue to make money off of it on Airbnb and not sell my current house?

Thank you so much for reading this and prosperous blessings!

[Fishindude77]

I would not want to be a remote landlord, five hours away.

[bjl584]

A friend of mine was in a similar situation.
He moved about 3.5 hours away and decided to keep the home and list it on Airbnb
He hired a host to look after the place, do cleanings, minor repairs, etc.
It is making him a fortune in rents, as he is in a very desirable area with lots of tourism.

Nothing wrong with doing what you want to do.

A few things to consider:
Depending how old the mortgage is, or who your lender is, you need to check to see if you can do Airbnb with your house since the original loan was written with the intent that you would be living in the home.
Rental loans are different that primary residence loans.
Also, you will need to call your insurance agent and tell them you are renting the home.
Again, insurance on investment property is different than insurance for your primary residence.
This would also be a good time to make sure your place is "safe" before renting it.
Install extra smoke detectors, fire extinguishers in the kitchen, GFI outlets near water, railings on porches, decks, and stairs.

Good luck