My parents own a home worth ~450k in a suburb roughly 40 minutes north of Cincinnati. It is a 4 bed, 2.5 bath 3,000 sq ft on a half acre lot with a large fenced backyard and unfinished basement. It is an extremely desirable neighborhood with extremely friendly people, kids playing outside and neighbors walking dogs, located in a above average school district. They are moving out west in the spring/summer and don't know wether to rent or sell. They have a very good rate on the house and I think they should rent however they are the type of people that don't take risks very often. Any recommendations on what they should do and/or how I could present them with options they could do?
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
10mo
If they have a big gain, take advantage of the tax free gain on sale. And very few 3000 SQFT $450k homes in Cincinnati will make good investment properties.
Developer · Member since 2020 · 4k+ posts · 4k+ votes
10mo
OP how much profit do they have in the home? If significant sale and use the 2 out of 5 primary house reduction of $250,000 each.
How close are they to going into a retirement home? If they are say 5 years out would have them sell you the house, assume existing loan, you take a low interest rate loan with them- interest only, have them put in a trust the loan goes to you. They must pay $6 to $12k per month for retirement home or be broke for government to pay. Any assets transferred within 5 years of them going to a retirement home will be taken back.
My parents own a home worth ~450k in a suburb roughly 40 minutes north of Cincinnati. It is a 4 bed, 2.5 bath 3,000 sq ft on a half acre lot with a large fenced backyard and unfinished basement. It is an extremely desirable neighborhood with extremely friendly people, kids playing outside and neighbors walking dogs, located in a above average school district. They are moving out west in the spring/summer and don't know wether to rent or sell. They have a very good rate on the house and I think they should rent however they are the type of people that don't take risks very often. Any recommendations on what they should do and/or how I could present them with options they could do?
If you are going to sell it, it's better to list in the spring. The other thing is, do you guys have a plan with the money?
Why not re-diversify into a couple different investment properties and/or use some of that money to put downpayment on another home.
My parents own a home worth ~450k in a suburb roughly 40 minutes north of Cincinnati. It is a 4 bed, 2.5 bath 3,000 sq ft on a half acre lot with a large fenced backyard and unfinished basement. It is an extremely desirable neighborhood with extremely friendly people, kids playing outside and neighbors walking dogs, located in a above average school district. They are moving out west in the spring/summer and don't know wether to rent or sell. They have a very good rate on the house and I think they should rent however they are the type of people that don't take risks very often. Any recommendations on what they should do and/or how I could present them with options they could do?
This boils down to a lot, especially what THEY want. NOT whether it makes the most financial sense or not. I won't make any recommendations without seeing what they value the most first. Happy to talk to them and go from there
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
10mo
If they have a big gain, take advantage of the tax free gain on sale. And very few 3000 SQFT $450k homes in Cincinnati will make good investment properties.