Profile picture for stangoldsmith2

rent vs sell

We have a house and will be moving to another (yet location is not determined, could be local, international or another state).

My idea is to hold onto our San Diego house forever, for future kids, family investment, etc., and to rent it out using an agency.

If we sold it though, we could buy a very large house in San Diego which we might be able to rent as well if we have to move.

If we rent our current house we'd have to pay a few hundred a month because the rent wouldn't cover our mortgage yet.

And if we rent we could still buy another house in SD, just maybe not as big or nice of one.

If we sell our house we'd likely break even with what we put into the house vs. the price we bought it at vs. what we could conservatively sell it at.

Any ideas?  Thanks!
  • November 16 2013 - San Diego
  • 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 (3)

Lots of moving parts associated with lots of potential options. It's apparent you're a planner and want to make the best decision for yourself/your family. Kudos. At the same time, you can drive yourself crazy playing the "What If" game. It seems you'll be better equipped to make the right decision once you know where you're moving next. From there you can identify your true goal/objective (i.e. maintaining a San Diego property to pass on to future generations without compromising yourself financially), project more accurate financials and begin narrowing down your options from best to worst scenarios. Stay focused. You'll make the right choice.
  • November 20 2013
  • 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 TedsHouse
Hi, Stan!

Wow, some good advice by Cory!

The only thing she left out are the tenants from H#$%!

I was discussing rentals with another agent today and she had two condos she rented. One tenant is still in one unit after ten years and the place is pristine. The tenant in the other unit, whom she knew professionally for years, was so filthy dirty, and permeated the property with cigar smoke, that she had to sell the place because you couldn't even walk into it without holding your breath. At least he didn't breed pit bulls, put tinfoil on the windows, and paint the inside black!

Even in the best case scenario, with a trusted friend back home to field problems when they arise, being an absentee landlord can be a frustrating affair. This goes to the best properties also. We're working on replacing a wall in a garage, to the tune of $6,000, that was damaged by an old roof leak years ago and just came to light now. You never know what's going to pop up.

Unless you have some inside guarantee that rental prices, and property values, are going to get to the point where you make a profit, sell now while you can break even.

Oh, yeah, we did that thing where we thought the kids would want to move to mom's old house, or at least use it for Florida vacations ... not a chance! They had other plans and it sat empty while, you know who, paid the expenses!

Good luck!
  • November 16 2013
  • 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.

Hi there,

Well, without knowing the specifics of your situation, I'll be very general. I don't know if I'd want negative cash flow of several hundred dollars every month for a prolonged period of time. Plus, that money you'd have to pay every month will be included in your expenses when you buy a new home, which might cause you to qualify for less.'

If you will get money out of the sale of your current home to buy a new home, yes, you could always rent the new one when you move. But, without knowing your neighborhood's market (sale prices, rent, etc.),  l can't really help with sale prices and market rents.

In general though, you'll want the rent to cover your PITI (principal, interest, property taxes & assessments, insurance). Add any HOA fees, and if you go with a professional management company, 10% of the monthly rent (you might find one for less). To be a little more detailed, add in vacancy to account for the time the home won't be rented, and maintenance and repairs. Be sure you have at least a basic understanding of landlord-tenant law too. There's a lot to know as a landlord!

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
Lic # 01443391


  • November 16 2013
  • 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.