Moved. Rent, Sell, Buy?

2 Replies

Please weigh in with thoughts on how you might evaluate and determine a way forward with the situation outlined below:

  •  Own old home (expected net equity upon sale < $5K)
  • Moved into rental home 3 hrs. away (Plan to keep renting in new location for time being as moving in less than 5 yrs. is a possibility and I don't think I can qualify for two mortgages)
  • Would like to treat property as long term investment for cash flow if possible but at a minimum would just like to be gaining equity in something.

Thank you 

Originally posted by @Jason White :

Please weigh in with thoughts on how you might evaluate and determine a way forward with the situation outlined below:

  •  Own old home (expected net equity upon sale < $5K)
  • Moved into rental home 3 hrs. away (Plan to keep renting in new location for time being as moving in less than 5 yrs. is a possibility and I don't think I can qualify for two mortgages)
  • Would like to treat property as long term investment for cash flow if possible but at a minimum would just like to be gaining equity in something.

Thank you 

Welcome to the forums! Definitely introduce yourself in on the "new members forum"

http://www.biggerpockets.com/renewsblog/2014/12/29...

 We own 5 rentals. 3 of which has been bought as personal properties. The easiest way to pick up a rental is buying it as a personal property and renting it out when you move. I TOTALLY understand the transient life style. My husband is active duty military so there is ALWAYS the possibility that we will only be in an area for for 3 years. We have done VERY well turning this transient lifestyle into a means to form what we hope become a rental empire (check out podcast 103). 

You probably would be surprise, I bet you can qualify for the second mortgage. We have been able to get equity, appreciation and cash flow from our houses. 

Pleas pm me if I can help. This is an AWESOME place to veto get TONS of resources.

@Jason White  

The decision should be based on the numbers.  Just because you're building equity in a property doesn't make it a good use of your money if you're actually losing money every month.  So where is your old property?  What are your expenses and what can you rent it for?  Do you have a property manager?  If you give us some numbers we can help you analyze if it makes sense to sell it or keep it as a rental.  My first house turned into a rental because the military decided it was time for me to move!  So I know the situation well.  I still own that property, but plan to sell as soon as the current tenant moves out because it loses money and I can earn higher returns on my money elsewhere.  I have since bought a few other properties in other areas because they do earn high returns. 

I also agree with @Elizabeth Colegrove . You might qualify for another mortgage and it might be worth looking into!  Where is your new job?  It might make sense to buy there if you can buy now with owner occupant financing (low interest and down payments) even if you move soon.  Only if the rents in that area will make money for you when you move out though.  

I hope this helped some, but basically if you give us some more details we can help you understand your situation a little better from the investor  point of view.  Information that will help: location, home prices and sizes, rent prices and sizes, your expenses, etc.  

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