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Should I rent out or sell my house?


Sully

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I currently have a house across from Georgesville Square. I am looking at a bigger house in Canal Winchester and might put an offer on it this coming weekend.

 

Should I sell my current house or rent it out? If I sell it, I am going to take at least a $20,000 loss on it, possibly even $30,000. And it could take MONTHS to sell it. I don't want to pay 2 mortgages for 6 months or however long it takes to sell it.

 

If I rent it out, I have to find someone who is going to take care of it. Plus, I'm not sure how much to charge for rent. It's a Dominion, 4 bedroom, 2 1/2 bath, full basement, dining room, living room, big kitchen, attached 2 car garage. Not counting the basement or garage, it's a little over 1,600 sq ft.

 

I just don't know what to do. So I'm asking for your opinions and advice. What do you think I should do; sell or rent it out? If you think I should rent it, how much should I ask?

 

Thanks in advance,

Mike

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Why would you move and take that much of a loss? It doesn't seem financially logical to do that. I don't know how much rent for homes goes for out there or what your mortage currently is but if you rented it would it pay your mortgage?

 

If not I'd stay put where you are, there isn't any sense in renting out a house and not getting enough to cover your monthly payment IMO.

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I'm going to rent mine out while I'm in school. I've got ability to check credit and all the standard things for renting so it'll be easier for me. As long as you can break even, you're ahead. With them renting you still have all the equity built up in that house, it's win.
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If you really wanna move to a bigger house then go for it. In this market I'd suggest just listing it yourself and trying to sell it. The reason I say this is that for a price you can put your house on the lists too and you won't be in as deep as having an agent. Besides it will probably take you 6 to 12 months to sell anyway unless you get lucky and then you can look around and pick out a nice house. DO NOT get yourself stuck with two mortgages. That is the fastest way to ruin. The agent will cut 6% from yo

wiggle room/profits too.

 

I know an agent that is up to his neck in sales still due to all his rich clients buying up depressed properties and holding for the turn around (which most people expect soon.) Look at builders stock prices over the last 3 months if you don't believe that. There making some headway now that bad reports have slowed in the news.

 

Evan

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only rent your house out if you can make 2 mortgage payments. if you cant then dont. because with all the renter laws and bullshit they can stop paying you rent and still live in the house months longer, and most likely fuck the shit up. just my .02. i thought about renting my house before (i could make 2 mortgage) but dont want to. instread im planning on paying mine off in 11 yrs. u should probably consider the same. or atleast if you want to move just pay the loan down so ur not upside down (btw did u not put any money down or does the neighborhood just suck)?
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This neighborhood was part of that Dominion bs where they scammed everyone out of a shitload of money. There were a lot of forclosures in this neighborhood after the 2nd year. This development has only been here just over 5 years.
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I wouldn't put another offer on the new house until you have a lot of cash set aside.

 

Let's just say I could pay cash for the new house if I wanted. But, I don't want to. I would rather leave as much cash in investments as possible.

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If you can't find a client that can afford 1000 a month in rent, you probably don't want to rent to them. Right now is a buyers market, not a sellers.

 

That's right around what I was thinking about asking, if I decide to rent it out.

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dude, why get a bigger house? you aren't getting married again are you?

 

Oh FUCK NO dude!!! This place is on 3/4 of an acre. The garage is 8 feet wider than mine and 5 feet deeper. And still have room to build a detached garage at a later time if wanted. The basement is 3 times the size of my current one. It's about 10 minutes closer to work.

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Buy the house right across from ours. :) Be easy to work on that TA then.. and my future car. ;)

 

That would be cool and all, but I want some elbow room. I am sick of living in a development. Having grown up on 50 acres, living on .00000001 acres sucks ass. I don't want to be able to see in my neighbors windows and vice versa. This house was only a 5 year plan anyway and it bit me in the ass when Dominion fucked us over.

 

I am leaning toward renting this house out. If it all works out, my payment on my current house will be about $750 a month. I would charge $900 a month for rent and set the extra money from rent aside for repairs. With my downpayment toward the new house, my payment will be about $750 there as well.

 

The only thing I have to worry about is finding someone trustworthy enough to rent this house that won't have any troubles making the payment.

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My folks have been renting the past few years because my mom's job makes her travel alot. They have actually rented a house that seems to be very similar to your own and I think they paid around 1200/month. But this was in Dublin so maybe that played a role in the high price?

 

When renting your not going to make alot of money on a monthly basis off of the rent itself when you account for the overhead of maintenance. Your still responsible for major items like appliance's and major repairs needed for the house. Even if you gain a profit of 200$ on a monthly basis and one year your roof needs to be fixed, there goes more than 2 years worth of profit. The money gained will be in the equity built in your house. I agree with Jones, if you can find a property management company to take care of it for you it will help alot.

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Never. Ever. Rent your house out. Boy, the stories I have from my father, step-father, and aunt from having rental houses. It was the worst thing any of them ever did with their house. Don't move, don't get another mortgage. Stay where you are until you can sell it and not take a loss... :nod:
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Let's just say I could pay cash for the new house if I wanted. But, I don't want to. I would rather leave as much cash in investments as possible.

 

 

Hmm if you want to move because you want more land I understand. I would be half tempted to do this if I was in your shoes. On the other hand the other half would not want to rent unless I am making profit on the house. I don't think right now is the time to sell the house outright either.

 

I would wait a bit on it and really think about it. No need to rush a huge decision like this.

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My realtor and I are suppose to meet a guy at the house tomorrow to kinda have the house checked out before I make any commitments. This is kind of a preliminary inspection, so-to-speak. So, we'll see how that goes and take it from there.
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I would make up the neg equity before moving on to a bigger/more expensive place, or eat the difference. If dont want to do that, I would rent it. You are going to have a hard time selling it unless you lower the price so it is cheaper than the other houses in the neighborhood.
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