Posted by mbbenson on May 26, 2006 at 11:10:37:
Thank you for the advice!! My husband actually had the same advice you did. I think we may just hold tight for a little while longer and stick around. There are some other benefits to waiting it out. I can be patient.
Your advice is helpful, even if we decide to wait to move!! Thank you so much!!
Want to move - sell residential home - Posted by mbbenson
Posted by mbbenson on May 24, 2006 at 21:35:45:
or keep as rental?
My husband and I have been contemplating moving to a bigger home. We really could use the space. I currently own a condo that I purchased prior to getting married. Initially, when I purchased, I figured I’d keep it and use it as a rental property. Now, I am wondering if it’s worth it. I would like to use part or most of the equity for the down payment on a new home. This is what we are working with:
Credit Scores - mid 600’s
Monthly payment (including mortgate and taxes) - $760 (balance $82000)
Association fee - $103
Possible rent - I am not exactly sure what this would rent for. I know that 2br apartments in the area are renting for 1100max. Mine is a 2BR w/ a possible 3rd room that can be used for office space.
I am not sure what these condos are currently selling for, but I have recently seen them listed at $144,000.
Perhaps, I am answering my own question. If we were to move now (into something decent, which would be, at least, $250,000), we would NOT be able to cover both mortgages (in the event of vacancy) comfortably if we had 30 year fixed mortgages on both homes. This is what makes me give up on the dream of holding onto it.
Any advice, tips, suggestions?
Thanks
Re: Want to move - sell residential home - Posted by Natalie-VA
Posted by Natalie-VA on May 25, 2006 at 10:21:17:
MB,
I wrestle with this a lot on our rental properties. Unless you think the area is going to experience significant appreciation, I would take the tax free money and run.
If you walked away with about 50k, you could put a 20% down payment on your new place (no PMI). Even if you didn’t put it down on the new place, you could invest it conservatively at 5% and still get the same return ($200) you would have gotten being a landlord, except without the work.
–Natalie