OT To Rent It Out Or Sell It

15 Replies
Mellissa - March 9

Ok... Chad left this morning to go to recruiting school. We will find out in three weeks if we have to move this summer or not. The chances of us NOT moving are slim to none...I am stressing pretty bad about this, of course. The main issue: OUR HOUSE. We just bought it in August of '05. We are still debating on whether it would be better to sell it and move on, or to rent it out since it's a nice investment. Renting it out would mean that there may be months when we have to pay the mortgage if renters don't stay (of course we'd go through a property management company and require a lease...but some people break leases). Also, i think i would be stressing about being in a different state and trusting someone to take care of my house the way I'd want them to. Selling it would mean having to do some repairs that I planned on getting done later this year, or early next year.. and getting the repairs done by this summer, with Chad being gone until the beginning of May. Either way, we'll have to pay the mortgage until the house either rents or sells..which, with the way the market is going, could take months. Everyone keeps telling me not to stress until we find out for sure if we're moving or not.. but that's what's so stressful...NOT KNOWING. I feel like I have so much to do.. if I had the money I'd just pay someone to come in and take care of everything for me.. but i know I can do it myself (i'm good like that..hehehe). Anyhow, in your opnion, or from your experience, which way would you go? RENT OR SELL???

 

rl- - March 9

well there are pros and cons to each you just have to sit down and make a list and go from there...renting it out would be most likely easier then selling it due to the market right now but then you have to keep up the repairs like if the a/c breaks in the middle of summer or something and also you would have to worry about how the people are taking care of it and selling well you would be done with it and as far as repairs well you could maybe take a little less if the buyer would be able to do the repairs themselves good luck I really feel for ya but try not to stress to much until you know for sure what is gonna happen!!

 

LisaB - March 9

We moved from Phx AZ to Wis last March and we weren't able to sell our home so we rented it out. I hate having it rented out. I am always worrying about whether the rent check is gonna be on time , have they ruined the house, are the taking care of the yard?? We invested alot of $$ in the backyard and I also worry they are destroying it. We did do the home warrenty so if the a/c or any other major appliance goes its covered. The lease is coming up soon and not being there I'm not able to get the house ready to present it back on the market. There ae college kids renting it what if we want to show it and its dirty or trashed. UGH I hate having it rented out. I really believe if we were in the same state it wouldnt be as big of deal but its just to much. On the flip side real estate is one of the very best investments out there so if you can handle paying 2 mrotgages if need be hang on to it!! Houses in our area have sold for 250+ we paid 143 for it so when we sell we will make over 100,000 on it if only it would sell!!

 

mosley12 - March 9

ive never dealt with this personally, but when my mom and dad bought one of our houses when i was like 6, they rented out our old house, and the renters trashed it and took off without finishing the lease or paying like 2 months worth of rent. after that my parents sold it and have never rented again. righ tnow they own like 3 houses, because they are fixing up 2 to flip and sell, and they considered renting, but decided against it based on previous experiance. i dont think i would ever rent because i would be to stressed making sure the renters are taking care of it, and if there were no renters, taking care of the morgatge...good luck on your decision though! dh and i thought about buying a house when we moved here, but not knowing what would happen we decided against it, so we live in base housing right now.

 

aggie03 - March 9

you have to pay capitol gains taxes if you sell before owning for 2 years (38%!!) There are ways to get around this but you need a good tax advisor. iwould look into that before making any decisions.

 

Mellissa - March 9

Thanks rl-.. believe me, I've been over the pros and cons of both. lol. my mind is just overwhelmed right now. LisaB- we bought ours for 143 also.. and like you, there are houses in the area going for 250+ so we know the value is going up every year. I love saying that we own a home and it's a great investment. I honestly don't know if we'll be able to make 2 mortgage payments or not. that's going to depend on where we move.. the cost of living there.. the cost of childcare, because I'll have to work full time to pay the mortgage, but then I'll have to pay for daycare also, since my mom won't be there to babysit for a small amount. I doubt I'll be able to find a job that will pay well enough to allow me to pay for childcare and a mortgage. You have no idea how hard I'm praying that we don't have to move.

 

aggie03 - March 9

oh, I just read your post agian...sorry...if you sell dont sell before August and youll be fine....Im dealing with the same decision, sell or rent... but we are moving out of the country! I just love my house its so hard to part with :(

 

mosley12 - March 9

mellissa, thats the one thing i dont like about the military! always having to move..lol..im praying my dh wont get out (but im not telling him that) so i'll pray you stay put to

 

Mellissa - March 9

oh geez aggie03..thanks for letting me know that! mosley12-those are my biggest fears. Do we want to risk coming back to a trashed house? And the risk of someone NOT paying the rent freaks me out. We have some savings that would cover a few months mortgage, if that did happen.. but oh the worry...you can see why i'm stressing. lol. I wish next month would hurry up and get here.. but I would really like to have my mind made up by the time we find out that we're moving, you know? That way we can go to the next step right away.

 

Mellissa - March 9

i know mosley... we thought we'd be here for a while.. neither one of us saw this recruiting thing coming. the army chose about 6 or 7 guys from his company to do it.. and he just happened to be one of them. they DID give him the choice to not be a recruiter, but the alternative was going back to Iraq in August..after only 10 months home. Chad wasn't about to do that, and i wasn't about to let him! at least with him being a recruiter, he doesn't have to go to iraq for at least 3 years. aggie03... i don't love my house, so it wouldn't be too hard for me to leave it.. i just don't know if i want to give it up already. it's really nice owning a home, makes me feel kind of empowered. lol

 

aggie03 - March 9

I understand Mellissa....I love this house bc I completely renovated it myself so its hard for someone else to put a $ on your own hard work..Im too attached....but at the same time I would hate to come back and see it distroyed by renters...sigh..

 

lexa - March 9

Well Mellissa, I say sell. We messed up and bought a house last summer before selling our house. We thought about renting it out, but decided against it. We didn't want to end up with someone who didnt take care of it; if they didn't pay their rent on time; repairs if they broke things; etc. So we decided to sell. We ended up with 2 mortgages. The downfall....We are now in the process of resigning our sell agreement (a whole year later and we still havent sold it). Either way, you could up sinking a lot of money out whichever route you decide to take. But I still won't choose renting out the house. Hopefully it sells soon. Good luck to you!

 

DeeJay - March 10

If you rent a house the rule of thumb is you should have at least 6 months morgage payments in the bank to cover when you don't get a rent check. Also, remember if you get a tennent that is trouble, it is VERY hard to evict them especially if it is a single woman with children, or if children ar involved at all. I am a PA real estate agent and renting around here is not real big unless you have a multi tennent unit, you can just make so much more if you sell, then you don't have all the headaches.

 

Mellissa - March 10

Thanks everyone!! Chad and I are still in the process of making our decision, but I am leaning more toward selling. I know owning a home is a good investment, and I know the property value will go up through the years.. but renting just comes with so many risks..and I'm not really a risk taker. Man.. i hope we don't move! lol

 

Rhiannon - March 10

I'm from Canada so I don't know ho w different the real estate laws are, but if you just recently bought it you have to think of the money you will lose to real estate fees (commission).

 

Mellissa - March 10

Rhiannon... the thing is i recently started working as a receptionist for a real estate agent, and he said he would sell the house for me for like 1% commission. of course i know i'd have to pay commision for the buyer's agent and most likely closing costs. But my boss has gone over my house, and did a cma and all and he thinks we could walk away with 8-10k after closing costs, and that's if we price it on the low end. the thing that worries me is the amount of time it will take to sell it. like i said, the market is pretty slow right now. we're paying $950 a month right now.. and i just can't see us being able to pay that, PLUS rent wherever we go.. i know the army will compensate us based on the cost of living in the area..but i'm still worried.

 

ADD A COMMENT:


You must log in to reply.

Are you New to the forum? Sign Up Here! Already a member? Please login below.

Forgot your password?
Need Help?
New to the forum?

Sign Up Here!


Already a member?
Please login below.





Forgot your password?
Need Help?