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I’m in a similar spot. Bought in 2021 have 3% loan, house worth barely more than we paid for it. Rent would cover mortgage but I would rather get my equity out and invest that somewhere else. Even if I put it back in real estate, I will put it into a fund where I don’t have to deal with it.
What do you mean if the market improves? Have home values gone down in your area? It's still a sellers market in much of the country.
Location?
Depends on the location but being a landlord should not be as much work as people believe it to be, especially for long term rentals. Make sure you do your due diligence on the tenant and ensure your appliances are not extremely old.
I add a clause in my contract that the tenant is responsible for the first $75 for any work IF it was due to their negligence.