Profile picture for Hazaar

Moving to other coast - sell/rent?


I am moving to the west coast. My house is in RTP NC. Recent sales(Jan 2009) of similar houses in my neighborhood indicate that there has not been a fall in the value. I have also been talking to a property manager who has good referrals.

Do I try selling the house or try renting it out thru the property manager (I definitely do not intend to manage tenants from 3000 miles away). With my current mortgage payments, I will have a negative cashflow if I rent my house.

My question is, should I refinance and rent the house to either break even or have a small negative monthly cashflow or take the risk and try selling the house?
  • February 12 2009 - Durham
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Answers (4)

Profile picture for natewolf

If this is a permanent move to the west coast, you should sell. You will likely get a better deal on west coast, since their values have fallen lower than those in North Carolina. So, in theory, our markets are still stronger and you could potentially have a better sales price, and any loss could be made up for in the savings on a property on west coast.


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  • February 13 2009
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Profile picture for strawberrycreek
I think 10% is still reasonable. Our prop. manager has quite a few units and I think this is a more common arrangement in CA, so the rates are a little lower.
$200 negative each month should not be a problem. Good luck.
  • February 12 2009
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Profile picture for Hazaar
strawberrycreek ... very good points! Thanks for the response, especially since it is from your personal experience. I was having some doubts since my property manager is quoting 10% monthly charge.

I guess overall I do agree with your points ... hopefully the tax credits should outweight the negative $200 each month.
  • February 12 2009
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Profile picture for strawberrycreek
Based on personal experience, keep it and rent it out with a property manager. We did the same thing during the last big downturn in So Cal in 1991, and have had a great rental ever since, PLUS - TAX WRITE-OFFS GALORE!!!!
You can absorb the monthly negative and reap the rewards at tax time.
But again, make sure you have a good property manager who screens the tenants, does credit checks, etc. Our manager charges us 5 % of the monthly rent and also about 1 month's rent every time they have to find a new tenant, usually every few years.
Again, tax write-offs! Our house has gone up and down in value, but still worth more than when we turned it into a rental.
Build up equity and tax benefits or sell in a poor market?

  • February 12 2009
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