Home › Forums › Closed Forums › Buying and Selling RE › Better to rent previous home or sell
- This topic has 30 replies, 7 voices, and was last updated 13 years, 9 months ago by enron_by_the_sea.
-
AuthorPosts
-
January 12, 2011 at 9:40 AM #18385January 12, 2011 at 9:43 AM #652125sdrealtorParticipant
It really depends upon the gain you have on the house now. If you sell now you can probably still qualify for exclusion of the gain as you lived there 2 out of the last 5 years. Next year you wont.
January 12, 2011 at 9:43 AM #652191sdrealtorParticipantIt really depends upon the gain you have on the house now. If you sell now you can probably still qualify for exclusion of the gain as you lived there 2 out of the last 5 years. Next year you wont.
January 12, 2011 at 9:43 AM #653244sdrealtorParticipantIt really depends upon the gain you have on the house now. If you sell now you can probably still qualify for exclusion of the gain as you lived there 2 out of the last 5 years. Next year you wont.
January 12, 2011 at 9:43 AM #652779sdrealtorParticipantIt really depends upon the gain you have on the house now. If you sell now you can probably still qualify for exclusion of the gain as you lived there 2 out of the last 5 years. Next year you wont.
January 12, 2011 at 9:43 AM #652916sdrealtorParticipantIt really depends upon the gain you have on the house now. If you sell now you can probably still qualify for exclusion of the gain as you lived there 2 out of the last 5 years. Next year you wont.
January 12, 2011 at 9:56 AM #652130sdduuuudeParticipantThis is a great Q – one I will have to deal w/ in a few years. I haven’t put a spreadsheet to the problem, though. My intuition tells me it is a close call. Some considerations come to mind:
– House value appreciation expectations
– Inconvenience of being a landlord.
– Cost of property management
– Expected vacancy / lost revenue
– Will selling help you get over 20% down to avoid PMI ?
– Mortgage rate vs. Return on equity
– Could you to retire / downsize back into your old house after living in the new house?
– Closing costs of sellingAlso, keep in mind – if you don’t sell, you can try being a landlord and change your mind if you don’t like it. If you do sell, it is difficult to go back the other direction.
January 12, 2011 at 9:56 AM #652196sdduuuudeParticipantThis is a great Q – one I will have to deal w/ in a few years. I haven’t put a spreadsheet to the problem, though. My intuition tells me it is a close call. Some considerations come to mind:
– House value appreciation expectations
– Inconvenience of being a landlord.
– Cost of property management
– Expected vacancy / lost revenue
– Will selling help you get over 20% down to avoid PMI ?
– Mortgage rate vs. Return on equity
– Could you to retire / downsize back into your old house after living in the new house?
– Closing costs of sellingAlso, keep in mind – if you don’t sell, you can try being a landlord and change your mind if you don’t like it. If you do sell, it is difficult to go back the other direction.
January 12, 2011 at 9:56 AM #653249sdduuuudeParticipantThis is a great Q – one I will have to deal w/ in a few years. I haven’t put a spreadsheet to the problem, though. My intuition tells me it is a close call. Some considerations come to mind:
– House value appreciation expectations
– Inconvenience of being a landlord.
– Cost of property management
– Expected vacancy / lost revenue
– Will selling help you get over 20% down to avoid PMI ?
– Mortgage rate vs. Return on equity
– Could you to retire / downsize back into your old house after living in the new house?
– Closing costs of sellingAlso, keep in mind – if you don’t sell, you can try being a landlord and change your mind if you don’t like it. If you do sell, it is difficult to go back the other direction.
January 12, 2011 at 9:56 AM #652784sdduuuudeParticipantThis is a great Q – one I will have to deal w/ in a few years. I haven’t put a spreadsheet to the problem, though. My intuition tells me it is a close call. Some considerations come to mind:
– House value appreciation expectations
– Inconvenience of being a landlord.
– Cost of property management
– Expected vacancy / lost revenue
– Will selling help you get over 20% down to avoid PMI ?
– Mortgage rate vs. Return on equity
– Could you to retire / downsize back into your old house after living in the new house?
– Closing costs of sellingAlso, keep in mind – if you don’t sell, you can try being a landlord and change your mind if you don’t like it. If you do sell, it is difficult to go back the other direction.
January 12, 2011 at 9:56 AM #652921sdduuuudeParticipantThis is a great Q – one I will have to deal w/ in a few years. I haven’t put a spreadsheet to the problem, though. My intuition tells me it is a close call. Some considerations come to mind:
– House value appreciation expectations
– Inconvenience of being a landlord.
– Cost of property management
– Expected vacancy / lost revenue
– Will selling help you get over 20% down to avoid PMI ?
– Mortgage rate vs. Return on equity
– Could you to retire / downsize back into your old house after living in the new house?
– Closing costs of sellingAlso, keep in mind – if you don’t sell, you can try being a landlord and change your mind if you don’t like it. If you do sell, it is difficult to go back the other direction.
January 12, 2011 at 11:06 AM #652981Diego MamaniParticipantInflation over the next 10 years will be significantly higher than over the last 10. That means that your rental income will go up susbtantially, while your mortgage payment will remain fixed. My advice is to keep it as long as the cash flow is positive and the upkeep is not much of a headache.
When I was a grad student in L.A. in 1995-1997, I used to rent a 2-BD apartment for $850 in a small 12-unit building. The rent was a little below market for the area, but that was the landlady’s strategy for retaining tenants with low turnover. At some point she decided that management was too much work for her and sold the building.
I recentlty checked what those units rent for today, and they go for $1500! She should’ve held the building for longer!
In your case, there’s going to be a “hot” real estate market sometime in the next 10 or 15 years (just like we had in ’79, ’89, and ’05). You can sell it then at a really handsome profit.
January 12, 2011 at 11:06 AM #653308Diego MamaniParticipantInflation over the next 10 years will be significantly higher than over the last 10. That means that your rental income will go up susbtantially, while your mortgage payment will remain fixed. My advice is to keep it as long as the cash flow is positive and the upkeep is not much of a headache.
When I was a grad student in L.A. in 1995-1997, I used to rent a 2-BD apartment for $850 in a small 12-unit building. The rent was a little below market for the area, but that was the landlady’s strategy for retaining tenants with low turnover. At some point she decided that management was too much work for her and sold the building.
I recentlty checked what those units rent for today, and they go for $1500! She should’ve held the building for longer!
In your case, there’s going to be a “hot” real estate market sometime in the next 10 or 15 years (just like we had in ’79, ’89, and ’05). You can sell it then at a really handsome profit.
January 12, 2011 at 11:06 AM #652844Diego MamaniParticipantInflation over the next 10 years will be significantly higher than over the last 10. That means that your rental income will go up susbtantially, while your mortgage payment will remain fixed. My advice is to keep it as long as the cash flow is positive and the upkeep is not much of a headache.
When I was a grad student in L.A. in 1995-1997, I used to rent a 2-BD apartment for $850 in a small 12-unit building. The rent was a little below market for the area, but that was the landlady’s strategy for retaining tenants with low turnover. At some point she decided that management was too much work for her and sold the building.
I recentlty checked what those units rent for today, and they go for $1500! She should’ve held the building for longer!
In your case, there’s going to be a “hot” real estate market sometime in the next 10 or 15 years (just like we had in ’79, ’89, and ’05). You can sell it then at a really handsome profit.
January 12, 2011 at 11:06 AM #652255Diego MamaniParticipantInflation over the next 10 years will be significantly higher than over the last 10. That means that your rental income will go up susbtantially, while your mortgage payment will remain fixed. My advice is to keep it as long as the cash flow is positive and the upkeep is not much of a headache.
When I was a grad student in L.A. in 1995-1997, I used to rent a 2-BD apartment for $850 in a small 12-unit building. The rent was a little below market for the area, but that was the landlady’s strategy for retaining tenants with low turnover. At some point she decided that management was too much work for her and sold the building.
I recentlty checked what those units rent for today, and they go for $1500! She should’ve held the building for longer!
In your case, there’s going to be a “hot” real estate market sometime in the next 10 or 15 years (just like we had in ’79, ’89, and ’05). You can sell it then at a really handsome profit.
-
AuthorPosts
- The forum ‘Buying and Selling RE’ is closed to new topics and replies.