So I just got the job of my dreams in LA, and I need to move there from Chicago in 30 days from today May 21st. I own a 4 bedroom single family house that has appreciated a lot in the 2 years I've owned it and have a very low interest rate 3.6% 30y fixed.
I have never rented a property out, but that was my long term plan with this house. However, at the time I was planning on being in the city to manage it. Now I'm trying to figure out what my best option is, sell the house (hopefully within 30 days) or hire a management company and deal with renting out to strangers across the country.
Also, if the best option is to sell, should i sell it myself or hire an agent? I would assume an Agent would be more likely to sell it quickly but there's a high cost to that both from selling price and their cut of the selling price.
Are there any experienced people out there who can offer me some advice on this?
If you decide to sell, I can reccrecommend an excellent agent. My parents had to sell their house and got stuck for 6 months with a nad agent an little showings. They listed it a second time with my recommended agent and got an offer on it in 1 week and closed in 40 days.
where at in Chicago?
2618 W. Crystal St Near Division and Western
Depends on how much cash you could net after a sale. I'm generally not a big fan of selling productive assets but there are lots of variables to consider.
whats the net of the sale, how long will it take you to match that in cash flow from renting?
Managing from a distance is horrible for some, and painless for others. All depends on the property manager and the relationship dynamic you set with them. If I could net 100k after closing costs VS $200/month in cash flow. I would probably take the cash. With that said, you also have to consider how many more years do you have left on the note. if it's almost paid for then I would say keep it and you now have equity access and cashflow.
House will probably sell for $475-500. Bought it for $330 2 years ago with 10% down. So net of 145-170. Still waiting on a market rent estimate but I'm guessing $2800-$3000k a month and my monthly Mort+tax+pmi+ins is $2100
Originally posted by @Will Hampson : If the property is in good condition you should be able to get $529K for the property. W/ realtor commissions & other costs you would net ~$163K. I'd sell the property & invest the $163K into another deal. You have more than enough room in your deal to use a realtor.
For me it'd be an easy decision....sell. If it was your primary residence for the last 2 years then you can take the gain tax free, if you rent it long term and then sell you'll owe capital gains (or have to do a 1031 into another investment property). Houses at the $500k price point don't tend to be very good cash flow rentals, unless you pull $5k/month in rent. You can take the profit and invest it into something else that's built for cash flow.
The only reason I'd rent it would be if you were planning on moving back to Chicago in a few years.
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