To the question listed above I am leaning toward renting, although my situation sucks overall.
I bought my home almost two years ago, after all was said and done it was priced at $165k +closing costs. My PITI is sitting at $1100. Currently I owe about $163k now so I do not have much equity, although I have made many upgrades like wood floors in basement and dining room, paint, trim and landscaping plus fence. Most of the house has upgrades like granite countertops and remodeled bathrooms.
The house was valued at $170k two years ago, and I believe could worth more today, maybe 175-180k.
I now have orders to Korea and need to sell or rent, I would try and rent @ $1425 just to gain more equity. After property management and PITI I would be positive about $200. I already have half months rent for 1 year for repairs that may incur. Am I missing anything? Any help is greatly appreciated.
Hi @Richard Harrington you have two viable options my main concern is that do you think you can get $1425 a month for rent ? If you can then I would probably go ahead and hold it a little longer to gain more equity.
I contacted a reputable property management co today and asked for the rental appraisal. It's comparable from my quick research of available rentals.
Personally I would rent it.My husband is active duty military and we have done very well buying houses at his duty stations and renting them out when we leave. They don't meet the 1%, 2% or 50% rule but have done very well for us. We have a house that is paying itself off and we didn't put that much money into it either using a Va loan or Conventional 5%.
Have you thought about self managing? I self manage all of our houses even across the country. It sounds like you have a great house that you can appeal to a fellow military family. I am launching a website about self-managing, and renting out personals instead of selling. If I can help let me know.
Looks like you have a lead, I hope it works out for you.
I am currently living in Korea.
We have a meetup in Seoul, feel free to join. We look forward to seeing you when you get here.
@John I actually saw about the Seoul meetup in another forum and just joined the group. When @Richard Harrington arrives I'll be sure to get him up there.
@John Van Uytven
You could also "let the market decide". List the house both as a sale and a rental. Generally renting would happen first. It does seem like your margins are thin for renting, so a good purchase offer might be worth strongly considering.
I would definitely try to rent it out. Making an extra 200 a month plus having tenants paying off your mortgage and helping you capture equity sounds like a win win. On the understanding you trust this management company.
2nd to none !
See you Saturday and I look forward to both of you joining us
@Victor Collazo Sorry but i'm an Air Force guy. When were you out in Korea?
update! The house has been rented for $1500 a month with a property manager. All things said, I will be making roughly $200 a month above. Win!
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