I'm moving out of state. Should I sell or rent the house out? - Posted by Joe

Posted by Steve-Atl on February 10, 2000 at 12:26:08:

I assume this is your personal residence. Do you have much capital gain? If so, and you have lived there for two of the last five years, you are eligible to take the gain TAX FREE. If you convert to rental, I believe you lose that exclusion.

If you have much potental gain in your personal residence, you might want to consider selling to get a significant tax exclusion.

I’m moving out of state. Should I sell or rent the house out? - Posted by Joe

Posted by Joe on February 09, 2000 at 21:59:51:

I am just getting into real estate investing. I have no rentals currently. My preliminary cashflow analysis indicates I could break even if I rent my home using a property manager in the O’fallon, MO area. Great house, great location. However, I also have a nice relocation package where my new employer will guarantee the appraised value of my home if it does not sell within 60 days. If I sell within 60 days, there is a bonus incentive to me. I am moving to Calfornia by the Bay Area, SF, Silicone Valley … get the picture … $$$ homes. What do I do? Sell the house? Keep it as a rental? How much risk is there by being an out-of-state landlord? Is there a way to rent this house and still have a way to purchase a home in CA without the equity in my current home? Can I use equity in a rental to make a down payment on a home? or maybe I should just rent in CA.

If you were in my situation, a person trying to become a real estate investor, what would you do? Please help.

Re: I’m moving out of state. Should I sell or rent the house out? - Posted by Jeff

Posted by Jeff on February 10, 2000 at 21:50:08:

I agree with the sell. I moved across the country (to MO,about 1 hour from your O’Fallon home :), started renting out my home in NC and have had trouble ever since. I have a professional (stretching the term) as a property manager and it has been a headache ever since! With your companies relocations packet, you can recover any loss.


NO question in my mind I would… - Posted by David

Posted by David on February 10, 2000 at 20:38:37:

SELL, SELL, SELL! the relo package, the favorable no capital gains on personal residence, and the long distance all make it a slam dunk.
The icing on the cake is that nobody manages my rentals
like I manage them. no matter how good the manager is they don’t manage as good as you do. I knew a guy named Tom who had 20 rental houses 1,000 miles away. He did it and made out well, but its not for me. Good Luck,

Hold that thought!!! - Posted by PBoone

Posted by PBoone on February 10, 2000 at 13:13:35:

I am in process of purchasing a home in Portland Or from a lady whom is moving to the area you mentioned. If you decide to sell your home instead of renting… I want to buy it as part of my purchase deal here. Give me a call (503) 668-0406 or email me the details of your home such as…
Address, value, what you want for a quick close all cash deal etc.