Updated over 12 years ago on . Most recent reply
Sell vs rent home
I'm sure this is a highly debated topic, but I'm trying to determine whether I should rent out my home or just sell it. Here's some numbers:
-Worth 230k-240k in today's market (I live in Clovis, CA)
-I still owe 189k (40-50k in equity)
-It was built in 2006, so its relatively new. i.e. I don't anticipate any major repairs.. although the carpet would probably need to be replaced.
Based on what I've heard in talking to property mgmt companies, craigslist, etc. I could probably rent it out for 1250-1350/mo. Unfortunately, my mortgage, plus property taxes, insurance, and HOA runs me about 1470/mo. So I figure 1250 - 100 (management fee) - 100 (lawn care), plus other unexpected costs, I'm probably only going to be pocketing $1000 or less.. on a mortgage of $1470, so nearly a $500 negative cash flow each month.
It almost seems like it would be dumb not to sell it as I look at these numbers. Plus, I have no emotional attachment to the home (I don't really like the layout or anything), I'm single, so there's nothing really tying me to it.
But... I have a few hesitations:
-Is it going to be harder/longer process to sell than rent?
-If the housing market picks up at the rate its been going, maybe its wise to ride it out for another year.. zillow is predicting a 10% increase this year (I'm aware that's just a prediction)
Thoughts?