My wife and I had a recent change to our income and will not be able to afford our mortgage in the next few months. Basically, we bought a renovated house and when it was assessed the next year the property value went up $40k and property taxes shot up on us (added master bed and bath). So we can’t afford it now and income isn’t changing anytime soon.
My question is what are my other options besides selling? The value of my home has increased about $20k in only two years. It’s a block away from million dollar homes and very sought out neighborhood. I could probably get 1500-1600 in rent from student housing. But only be banking about $200 after my mortgage payment.
As of now we’re thinking about selling and profiting about $25k-30k and renting for a while. Would like to keep house in some capacity. What do you guys think?
*Refinancing didn’t make much difference.
Sorry to hear that but at least you are being proactive!
I think it depends on your long term plans...
If you love the home and want to keep it in the long run, you could rent out for now and potentially move back in when you feel comfortable enough financially to do so. That said, it will probably be a cash flow negative rental if you only get $200 profit after paying the mortgage. But if this is your dream home, maybe it is worth losing a couple hundred a month to keep it?
If you don’t have an emotional attachment than sell it and break away clean. You could them look to house hack. Move into a duplex, triplex or quadplex. Let others pay your mortgage!
Best of luck with everything!
Also, you could AirBnB if you have extra rooms in the house to rent out. Maybe that helps you stay with a little extra income...
@Robby Hogle thanks for your suggestion. AirBnB is a good idea but not ideal for our situation. The only thing holding us back from selling is the future value of land. 10 years from now the university could end up buying the land and would hate to miss out on that opportunity.
@DeMarrius Payne how much a month did your taxes go up? It shouldn’t be that much.. can you find another job to make it work or not?
You basically have 2 options 1. Rent it out. 2. Sell.
From what you’ve said I would sell
@DeMarrius Payne do a lease option. Get the poorest person you can find. After 1yr or 2yr they wont be able to buy it and you will be able to keep it.