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Updated almost 6 years ago on . Most recent reply

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Tammy Price
  • Cary, NC
4
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13
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To sell or rent when losing money on both..

Tammy Price
  • Cary, NC
Posted

Hi,

I'm moving from Atlanta to NC, I'm try to cut expenses buy selling or renting the house I'm leaving in Atlanta, it's a new home constructed in Sep 2018 it cost $266000 with a VA loan 2 car garage 5bed 3bath with a framed basement and the potential to have 2 more bedrooms, just got it appraised and it came back at $247000, I asked a property manager and he thinks the max we could get it rented for is $2000 a month, to cover cost and no cash flow I need at least $2230 a month, feels like this is a complete money pit. What would you do? Do you see any other potential options like AirBnb it?

Thanks

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Replied

@Tammy Price do you have money to bring to the closing table.  Using a 6% commision and a 2% closing cost = $227240 net. $266000-$227240= $ 38760 you would need to bring to the closing table. $38760 / $230 negative cash flow= 168 months of feeding it. Not taking into account capex,repairs,vacancy and pm. Estimate your true negative cash flow @ $830 or 47 months of feeding. It will have to be your decision, whether to sell now or hope the market goes up. Every year if you raise rents your negative cash flow will go down.

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