Sell or Rent 20 y.o. SF
SF purchased over 20 yrs ago for 125k. Owe 95k. Being offered 290k to sell. OR, what's the right rent amount to charge to keep home but move out and have a property management company manage it as a rental? Home is in need of approximately 10k in repairs/updates, will add guarantors insurance (it's my first rental) and I anticipate next year's taxes to be around $2150 (based on the percentage of this year's taxes to value). If you've got experience with this, I'd really appreciate the number for rent and any of your insights too. Thx
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
This property says "Sell" in every language known to man (and women). Forget what to charge for rent. IF your cash flow, not rent CASH FLOW was $2000/month (not typo), it would take you over 8 years for it to equal the dollars you would get if you sold it now. Why is that important? If you sold now, and after closing costs you were left with at least $175k in walk away cash, that $175k should get you a property (or group of properties) equal to over $800k...not the measly $290k you have now. How much CF do you think you would have in that case?