Profile picture for happy8389532

Should we sell or rent

We currently own a home with about 35000 in equity in it. We also owe a loan for 14000 that my husband used prior to us getting married to do upgrades, and pay on that monthly along with our mortgage. We still owe another 3 years on it....So we want to move out of state and don't know if we should rent out or sell the house.By renting  we would get enough to cover our mortgage and a majority of the loan payment monthly, minus property mgmt. fees or should we sell and make maybe 10000 profit after real estate fees and paying off the upgrade loan?? Were trying to make the best decision for our family.
  • November 03 2013 - Ashland City
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Answers (5)

Profile picture for happy8389532
Thanks so much for the responses. We would be moving to Southern California. That's where I was born and raised, but real estate prices there are out of this world! I do think that it is risky to rent out of state and hope that we would get decent renters. We did plan on hiring property mgmt. if we decided to rent, but that would put us in the negative. I think if we planned on living closer it might be a attainable idea to rent. As far as selling goes, the house across the street and on the side of us are both flipped and for sale. Im not sure what this does for our home value or the ability to sell anytime soon, since there Is competition.
  • November 03 2013
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Hi Nicole, 

I agree with Wetdogs. Those are all very important questions to ask yourselves. It is very difficult (if not impossible) to manage a property from another city, much less, a different state. You would have to get a property manager to manage that rental and that could cost you anywhere between 5-10% of the monthly rental rate. It sounds like without the cost of a property manager, you would already be cash flow negative so I would not recommend keeping this house. 

What part of the country will you be moving to? 

Good luck!
  • November 03 2013
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Profile picture for Rafe Smith
Wetdawgs makes so great points that you should consider. One other thing I would add is how will you handle extended time between renters should it happen. If you choose to sell please feel free to reach out I would be happy to be of service. I just closed a home your way in Sept.
  • November 03 2013
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A bad renter can do much damage.  I had 5 rental properties years ago and the damage they would do could be significant.  If you check out their credentials, do credit checks, check their rental history (actually call) and you do get a good renter, it can be great situation.  Being long distance away can be very hard to maintain.   You have to have dependable contractors in place for emergencies or let a good property management that takes care of everything look after it for you.  I had contractors in place but even then I had to be present to make sure that the job was done properly. 
Its something you have to decide on if it would be worth it.  Sometimes its better to sell and run. 
Good luck, I do hope this helps
  • November 03 2013
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Profile picture for wetdawgs
It sounds to me like you have some more basic questions to address before the one you asked ("Should we sell or rent?")

Does being a landlord fit into your family's financial long term plans?
Do you want to be a long distance landlord?
Do you have the financial reserves to cover emergencies (be it new furnace, roof, tornado or whatever)  to keep the home in habitable conditions while living your lives elsewhere?
Do you ever plan to live in the community again?

My humble opinion, most people do not make good landlords and having a rental a zillion miles away is difficult even with a property manager.

  • November 03 2013
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