Rent or sell

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
Hi

We have single family home in PA and we will be moving out of state in few months. We have monthly payment for $2000 (mortgage+insurance+tax) for 16 more years and $100 HOA.
We might break even if we sell the house but we dont want to go through the stressful process when we move.

Is it better to rent or sell. if we rent, how should we go about in renting out. Should we find the realtor to rent out and get the coverage for maintenance of appliance etc...

Edit: I can rent it out for $2400 I guess. 

 

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

senjeyak said:   Hi

We have single family home in PA and we will be moving out of state in few months. We have monthly payment for $2000 (mortgage+insurance+tax) for 16 more years and $100 HOA.
We might break even if we sell the house but we dont want to go through the stressful process when we move.

Is it better to rent or sell. if we rent, how should we go about in renting out. Should we find the realtor to rent out and get the coverage for maintenance of appliance etc...

  Sell.
ETA: Being a long distance LL is not for the inexperienced. From your questions, you certainly dont come across as an experienced LL.
If you selling a house is a stressful proces, wait till you get a PITA tenant.

Sell

Short answer, selling likely best. Even if you have to bring a couple thousand to the table. And are you really only about breaking even with only 16 yrs left on mortgage? Should be 30% into loan amortization by now I'd think...

Longer answer: If renting, don't forget about 1% home value a year as a rule of thumb for maintenance. Plus 7-10% for a property manager. If you're nut every month is $2,100, and the place would need to rent for $2,500+ to break even. Worth a phone call to a local property management company to see what their rental estimate is. If will rent for $2,500 or more, worth considering at least.

Selling and being a landlord can both be stressful, often in different ways.
You could always discount the principal that you're paying each month and consider it an investment, but negative cash flow is negative cash flow.

sell.

Sell. If you think it would be too stressful to sell a house, you probably shouldn't try being a landlord.

How much is the house worth, and how much can you collect monthly in rent? Your costs are largely irrelevant. Think about the money you'd have if you sold. If you had that cash, would you invest in a rental property? Your answer shouldn't be any different just because you already own a property.

Unless value is low and rents are high, sell.

buy

Yes, I am pretty much new and have no idea of maintaining property here.

senjeyak said:   Yes, I am pretty much new and have no idea of maintaining property here.
Run, seller, run



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017