Profile picture for sullyc

Selling now or continue to rent out?

My tenant's lease is up in August and my plan was to put my house up for sale; however, the tenant would like to continue for renting for 3 years.  I already am supplementing their rent to pay the mortgage and the idea of selling the property is appealing but not sure if the market has recovered enough. Zillow list the house at $473K and I owe $480K; I am spending $1200 each month in expenses. What is the predicted market a year or two from now? should I hold on and keep renting? How do I make this decision. It's not just straight dollars as there are many unknowns. Will the tenant really stay 3 years; will the market increase; if I sold now at what price? etc. What steps/info should I be looking at?
  • May 01 2014 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (2)

I would find how to cut some of those expenses quickly. Raise the rent. If you are paying for electricity, make sure the bulbs are leds and/or non-filament types. If you are paying for water, install a coin-op washer and dryer in the cellar. If you are paying for heat, make sure the furnace/heating plant, is working up to par. Always, always, always, think out side the box on this stuff. If can get a new mortgage to reduce your expences.

The other big step is to consult your CPA for this. Don't know your tax status. Sometimes the $1200.00 lost is a gain some other place in your finances. I would seek some serious local help. Then make a decision of buy or sell.

Have you talked to any professionals in-so-far as the rental price is for your property in your area?

I met a woman and her daughter who were living in a one bedroom apartment, and renting out their condo because of the cost of the high end lux car she purchased. And was still loosing money. I suggested to get rid of the car, and move back into the house and drive something more humble like my old VW.

Not being able to look into your financials, and just taking some mud to the barn to stick, maybe there is something else in the picture you have not disclosed here.
  • May 02 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Dan Tabit
Sullyc, 
Anyone who guarantees you what the value will be in a year, 2 or 3 is psychic, a time traveler or lying.  
Your value according to Zillow is not a place to stop, but a place to start.  You need a more reliable idea of the current market value by having a great local agent see the home and discuss the situation with you.  
Having to pay your mortgage out of pocket after receiving rent, can be tough.  I think a complete review of what rent should be as well as current value as well as your interest in staying as a landlord will help you decide which option would be best for you.  If you do stay a landlord, you can plan rent increases or just do a one year lease and reconsider extending again then. 
  • May 01 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.