I bought my townhouse back in 2003 for 140k. We had an "Artificial Boom" where the property was selling for 250k at the height. Now it is tough to get anything more than 180k for it, and no one is really buying.

I am on a 5 year plan and really want to jump into a nicer community and house/condo. Something more luxurious and such.

I am considering renting it out until the market comes back around for sellers. I'm wondering if it is more hassle than it is worth and if I should just sell for the 180k range...

The houses around me are renting for about 1400 per month. This will cover all my expenses..

I would like to rent it out furnished also, as most of this furniture was meant for nook spaces and such...

Anything I should be wary about?

I have quite a bit cash on hand and could work on paying this off while renters are in there.

My next place will be in the 300 to 500k range......

And also, my townhouse is near a bunch of colleges, so I can easily rent out to college students, but not sure if this is wise.

Please tell me this is a joke.

swordfish01 said:I bought my townhouse back in 2003 for 140k. We had an "Artificial Boom" where the property was selling for 250k at the height. Now it is tough to get anything more than 180k for it, and no one is really buying...I am considering renting it out until the market comes back around for sellers.
When do you think the market is going to come back around for sellers, particularly in S FL, largely considered one of the weakest housing markets in the nation? 180k would represent almost a 30% gain in 5 years. I'd take that and run. Are you really hoping to see $250k anytime soon?

beethovengirl said:When do you think the market is going to come back around for sellers, particularly in S FL, largely considered one of the weakest housing markets in the nation? 180k would represent almost a 30% gain in 5 years. I'd take that and run. Are you really hoping to see $250k anytime soon?
He wouldn't be able to sell the house at $180k. The market has about three years' worth of unsold homes, and I don't think that figure even includes foreclosures.

germanpope said:lorcha said:Please tell me this is a joke.

nope --- but I have another question --- I bought a Rubbermaid clothes basket on sale for $5.99 at Kmart ---- but a day latter I found out that Target has the same one for $5.49 --- should I get the new basket and rent the old one --- or should I return the first one and ....

I would keep it and just learn that next time checking out "hot deals" will save you a lot of this hassle

You really should be posting on the rental property thread, or on another board altogether like mrlandlord.com , if you want to know about renting.

IN SHORT,
Renting your house to another can bring about all kinds of problems. A furnished rental (when that is even desired) magnifies exponentially the types of problems you can have.

Also, renting is a local game. How is your local rental market? Local rental laws? How long will it take to realistically find good tenants? Who will fix the toilets and heaters and everything else that will go wrong? In BIG cities, like NYC, DC, SF, lots of young people and real estate costs make it easy to find tenants. Elsewhere...totally different ballgame, rental houses seldom net you money.

Selling at the price you paid might be the best deal.

Every month that unit sits empty is lost money. You still have to pay your taxes, insurance and association fees. I was going to rent out my condo when I bought my house but figured out it was not worth it.

If you can sell, do it. "Only" making 30K? How about the use of the property for 5 years? Is that worth anything? If you say you could rent it out for $1400/ mo, then it would cost $84,000 to live there for 5 years.

swordfish01 said:
Renting this place out funished is not a big deal, because the funiture is already mediocre from target and such... even if they damaged it.. i would take their deposit and be able to recover no problem...

I think you underestimate the hassles involved with disputes over what is normal wear and tear for furnishings. I suggest that you plan to throw out all the furnishings after the first set of tenants without recovering anything from the deposits. Most college tenants will not take care of furnishings like you would take care of your own property. I suggest requiring two months rent for the security deposit.

If you decide to rent, I suggest you educate yourself on Landlording issues. Insurance, maintenance, local ordinances, etc.

What's the advantage to FSBO?

You seem to think that the realtor does absolutely nothing but walk in at closing and collect their 6%.

A good realtor will promote your house, tell you how to make it more saleable, and plug you into the MLS, among other things.

If you think you can sell it on your own, more power to you. But if you think you can plop a For Sale sign in the front yard and sell your property in a down market in three weeks, you're way off.