I am on the verge of relocating for work and just assumed we would sell our home. Basically with the market here we expect to get back about what we paid for the home 4 years ago. Then I went and took a look at what homes like mine in the area are renting for these days and its much more than I pay in monthly mortgage,insurance, taxes. So it got me thinking...what factors dictate when is the right time to rent out your home rather than selling?

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Posted by I Love Bama

Alabama

Member since Nov 2007

37702 posts

Posted on 1/24/14 at 3:38 pm to lsugradman

quote:
hen I went and took a look at what homes like mine in the area are renting for these days and its much more than I pay in monthly mortgage,insurance, taxes. So it got me thinking...what factors dictate when is the right time to rent out your home rather than selling?

How much is your monthly note including taxes and insurance?

How much could you rent it for?

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Posted by lsugradman

Member since Sep 2003

8545 posts

Posted on 1/24/14 at 3:56 pm to I Love Bama

Monthly payment: ~1800.
Rent based on market comps: $2300-2700

Also important note, my company provides ~350 a month in maintenance allowance if you elect to rent your home instead of selling.

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Posted by TigerintheNO

New Orleans

Member since Jan 2004

41179 posts

Posted on 1/24/14 at 4:07 pm to lsugradman

Don't forget that your add in the increased costs if you aren't able to take the homestead exemption on that property anymore.

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Posted by I Love Bama

Alabama

Member since Nov 2007

37702 posts

Posted on 1/24/14 at 4:15 pm to lsugradman

$2,700 - probably

$2,300 - no

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Posted by lsugradman

Member since Sep 2003

8545 posts

Posted on 1/24/14 at 4:34 pm to I Love Bama

quote:
Don't forget that your add in the increased costs if you aren't able to take the homestead exemption on that property anymore.

Yeah i realize that. Will add about ~100 in taxes to my monthly payment.

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Posted by TejasPete

Member since Dec 2013

1425 posts

Posted on 1/24/14 at 5:14 pm to lsugradman

Is your current house one you could see yourself living in again? If so I would rent it out, if not sell it.

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Posted by lsufan1971

Zachary

Member since Nov 2003

18184 posts

Posted on 1/24/14 at 6:35 pm to lsugradman

You always run the risk of a renter destroying your property. It's happens much less frequency in the price range you will be asking but still happens. I know an attorney that rented her house to a Dr. And after about a year the Dr stopped paying the rent and did about 15k in damage to the house.

This post was edited on 1/24/14 at 6:53 pm

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