So here is my question. (Lincoln, IL) The house we live in we have had for a few years, we put 14,000 in it and it's absolutely beautiful. We got in when rates were around 2.4% and our payment is around 650/mo. We can rent it for around 850/mo or sell for around 98-100k. We owe 85,000 so we wouldn't get more than 8k after commission. My agent said we could list for 108k but it would take awhile to sell it over 100k. Is the 200 from rent going to cover costs? I would hate to lose that awesome rate. It is an imaculate 3/2 with a 2.5 car garage in a nice neighborhood. I would love some opinions as to what I should do. Thanks in advance!
For me it would depend on if I was staying in the area or not (I would't want a long distance rental) and if I could qualify for my new house leaving this as a rental. If I am sticking around and can get a new mortgage, I would keep it. Screen, screen, screen. That IS an awesome rate, @Chad Kamerad !
thanks bud, it's only 40 mins away and we are only moving so the wife doesn't have to drive so far to work. We are actually qualified to get another home and another rental. The place we are negotiating has an efficiency on the third floor plus we are (hopefully) getting it for around 30% under market value. Finding a good deal on a investment property is becoming a long task but we will get there. Should I worry about taxes going too crazy on the place we are moving out of?
Well, if you have been occupying it as your primary for over 2 years, any gains are tax free up to $500k married filing jointly. Doesn't sound a lot of gain, though, right? Owe $85k, net $8k. How much did you buy it for @Chad Kamerad ?
bought for 88k. What I was asking was about the property taxes going up if we rent it.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing