Should I sell or rent out my condo?
Hey All,
I need some guidance here. My family and I have outgrown our condo and would like to buy a single family home ASAP. I bought my condo in 2005 for $138k then I foolishly renovated the entire place myself for about $25k. My recent plan was to keep it and rent it out while buying a single family home, but I recently had a lengthy conversation with my retired realtor neighbor which has me second guessing. He keeps a close eye on things in the neighborhood and explained that he doesn't see any type of comeback on these places and that if anything they're going downhill and he'll probably just cut his losses and sell. Recent comps revealed 2 units just sold for around $78k and there has been a decline in the type of tenants renting here.
Here are some figures:
$1250 - total per month incl. mortgage, HOA & taxes
108,000 - what I owe/Mortgage
From the research I've done, I don't see these units selling for a whole lot but with mine in the condition it is in I'm thinking /hoping I could get about $118k, walk away w/o owing and cut my loses.
Or should I rent it out and hope I can find a tenant willing to pay 1,200 - 1,250? I'm afraid it may sit vacant for a while if I chose this option. If I sell it, I could at east stay here until it sells.
The only good things I can say is the place is very nice and completely renovated, is in a top/award winning school district and last year I refinanced the 1st mortgage to a 15 yr conventional for 2.75%.
Thanks for reading!
Joe