Sell or rent my home with little equity

Fort Worth, Texas
Buying & Selling Real Estate
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Sell or rent my home with little equity

Matthew Lewis
New to Real Estate · Member since 2015 · 3 posts · 1 vote

Hello,

I am new to investing and have a question about my primary residence in fort worth TX. I moved to another state for a job. I have been trying to seel my phone but have not had much luck due to the market. I owe about $292,000 and asking for $305,000. My company will cover the realtor fees and closing costs due to a relocation package. My monthly payment is $2562 a month for mortageg, tax and insurance. If I rent it out I might can get $2100-2300. Do i continue to wait it out and try to sell or do i look to rent it out even though I won't cash flow on the home?

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1y
Quote from @Matthew Lewis:
Quote from @Caleb Brown:

I would sell. TX has been moving slower, it's not the red hot market compared to previous years. What is your agent telling you? Are the photos good? Is it priced right? 

The photos are good but we may be stilled priced high. Other homes have now dropped in price to under 300k. We are thinking of doing the same.



 I would price it where others are at. If it's high you won't sell or it'll take forever. If you rent then don't plan to sell while rented, it won't sell and that'll further complicate selling. Renting would be if you plan to hold for a few years but being negative $650 is not attractive. Be aggressive and get it sold. 

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    I would sell. TX has been moving slower, it's not the red hot market compared to previous years. What is your agent telling you? Are the photos good? Is it priced right? 

    0Reply
    • Matthew Lewis
      OP
      New to Real Estate · Member since 2015 · 3 posts · 1 vote
      1y
      Quote from @Caleb Brown:

      I would sell. TX has been moving slower, it's not the red hot market compared to previous years. What is your agent telling you? Are the photos good? Is it priced right? 

      The photos are good but we may be stilled priced high. Other homes have now dropped in price to under 300k. We are thinking of doing the same.


      0Reply
    • Caleb Brown
      Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
      1y
      Quote from @Matthew Lewis:
      Quote from @Caleb Brown:

      I would sell. TX has been moving slower, it's not the red hot market compared to previous years. What is your agent telling you? Are the photos good? Is it priced right? 

      The photos are good but we may be stilled priced high. Other homes have now dropped in price to under 300k. We are thinking of doing the same.



       I would price it where others are at. If it's high you won't sell or it'll take forever. If you rent then don't plan to sell while rented, it won't sell and that'll further complicate selling. Renting would be if you plan to hold for a few years but being negative $650 is not attractive. Be aggressive and get it sold. 

      1Reply
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    1y

    What interest rate do you have on the loan?

    is it FHA/VA assumable? if you have a lower rate (under 5.5) you could leverage that to new buyers.

    Also, consider giving seller concessions. That will help bring you a buyer. If you want to have such a large negative cash flow that is 100% up to you. It would help come tax season & a tenant paying down your loan but that's about all. Don't forget property management fees. 

    Happy to help. Best of luck.

    [email protected]817-480-9452
    United Real Estate DFW Properties 565 Reviews
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    0Reply
    • Matthew Lewis
      OP
      New to Real Estate · Member since 2015 · 3 posts · 1 vote
      1y
      Quote from @Preston Dean:

      What interest rate do you have on the loan?

      is it FHA/VA assumable? if you have a lower rate (under 5.5) you could leverage that to new buyers.

      Also, consider giving seller concessions. That will help bring you a buyer. If you want to have such a large negative cash flow that is 100% up to you. It would help come tax season & a tenant paying down your loan but that's about all. Don't forget property management fees. 

      Happy to help. Best of luck.

      I have a FHA loan. It is 4.875%. YES, with property management fees and everything else I'd still be paying $650 a month to rent it out. While that is not ideal it's still much better than pay almost $3,000 now to hold on to while I try to sell.

      0Reply
    • Theresa HarrisPro Member
      Member since 2019 · 15k+ posts · 11k+ votes
      1y
      Quote from @Matthew Lewis:
      Quote from @Preston Dean:

      What interest rate do you have on the loan?

      is it FHA/VA assumable? if you have a lower rate (under 5.5) you could leverage that to new buyers.

      Also, consider giving seller concessions. That will help bring you a buyer. If you want to have such a large negative cash flow that is 100% up to you. It would help come tax season & a tenant paying down your loan but that's about all. Don't forget property management fees. 

      Happy to help. Best of luck.

      I have a FHA loan. It is 4.875%. YES, with property management fees and everything else I'd still be paying $650 a month to rent it out. While that is not ideal it's still much better than pay almost $3,000 now to hold on to while I try to sell.


       It may seem better, but factor in damages, wear and tear, etc and it might be better to sell.  You have to think longer term.  Not sure how long you owned the home, but it is great that your new company is willing to cover a lot of the expenses.  I wouldn't recommend buying a home unless you know you will be in the area for several years (eg 5+).  Yes life happens, but sometimes you know a situation is only temporary.

      1Reply
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    1y

    @Matthew Lewis are you trying to FSBO? or is it already on the market?

    You need to market that 4.875% assumable loan!

    Happy to help. 

    [email protected]817-480-9452
    United Real Estate DFW Properties 565 Reviews
    WebsiteView Page
    0Reply
  • Brendan Mullenholz
    Real Estate Agent · Washington, DC · Member since 2025 · 157 posts · 77 votes
    1y
    Quote from @Matthew Lewis:

    Hello,

    I am new to investing and have a question about my primary residence in fort worth TX. I moved to another state for a job. I have been trying to seel my phone but have not had much luck due to the market. I owe about $292,000 and asking for $305,000. My company will cover the realtor fees and closing costs due to a relocation package. My monthly payment is $2562 a month for mortageg, tax and insurance. If I rent it out I might can get $2100-2300. Do i continue to wait it out and try to sell or do i look to rent it out even though I won't cash flow on the home?


    Definitely sounds like a sell situation and with with that rate, You should market that strongly. Helps in the DC area where we have a lot of VA loans around.

    1Reply
  • Myka Artis
    Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
    1y

    I'd be interested in it. 

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    A lot of owners end up being "Accidental Landlords" due to your situation.

    How much time do you really have to devote to learning how to be a landlord?

    So, you probably want to hire a PMC - but, that will make your negative cashflow even worse.

    Holding onto the property may increase your wealth if the value keeps going up.

    Some here on BP, may suggest selling to take advantage of the $250k single/$500k joint tax-free capital gains from a sale, but it doesn't appear you've got much of that.

    Think long & hard about selling vs renting!

    [email protected]248-209-6824
    Logical Property Management4.9460 Reviews
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    1Reply
  • Matthew Masoud
    Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
    1y

    I would 100% sell it.

    You think you're only losing $200-$400/month but inevitably a water heater or AC is going to break and you'll be out thousands.

    Get out and be grateful that your job will cover your closing costs.

    1Reply
  • Jeremy Torres
    Rental Property Investor · TX (texas) · Member since 2019 · 121 posts · 33 votes
    1y

    Rent it!  Even if you break even and make $1 every month.   See how it goes, if not, sell

    0Reply
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    1y

    I would sell it. There isn't anything attractive to me about a long distance, negative cash flow rental property with no recent equity. When you are actually interested in purchasing a rental property find one that makes sense and will be a solid investment. 

    1Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    Cut your losses now and start again fresh. I have lived this nightmare before... This is too large of a cash flow gap to make sense anywhere in the near future.

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
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    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Matthew Lewis

    Thanks for sharing your situation—it’s one many investors have faced. Since your relocation package covers closing costs and commissions, selling might still make sense if you can get close to asking, especially if you're not keen on being a long-distance landlord. However, if the market is slow and you’re okay holding for a while, renting it out—even at a slight monthly loss—could help build equity and ride out market appreciation. Just make sure to factor in maintenance, vacancy, and management if you're out of state. DM me and I’ll point you in the right direction on whether renting or selling fits better based on your long-term goals and the Fort Worth market trends.

    Good luck!

    [email protected]832-776-9582Podcast Guest on Show #469
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