Calculating the Cost of Downsizing

Contemplating getting ready to move by the end of the year.

Many know I’d love to move to Seattle and rent out our primary residence. Last week I saw a local rental listing and thought “why wait”.

Our house has four bedrooms plus a small den. It is half a block from a nice lake. I think it could command $1500/month in rent. Maybe more. Our mortgage is $1200/month, which includes taxes and insurance. Assuming we could keep the current loan, adding a little bit for vacancy and maintenance this cash flows at about $150/month. A bit below our current average for the house we bought as rentals.

The vacancy that caught my eye was apartments in a recently restored historic hotel close to downtown and close to the lake. Rent was $1300/month and included all utilities. I figure we could save $500/month if we eliminate our utilities and homeowner costs. We’d have less privacy and less space, but that is part of the downsizing adventure. We might have to get a small storage unit to house the items we are not quite yet ready to part with, and some of our kids belongings until they get settled.

Interesting to think about, we’ll see what develops!