All Forum Posts by: Nick A

Another consideration I forgot to add:

Let's assume I brought $25k to closing to sell the property.

That same $25k, if applied to another refi. (assuming the same interest rate) would reduce the mortage by $315 a month - so now we have a postive differential between mortgage and rent payment

Thing is I don't have the 25k cash to invest either way. I could borrow it, but that would only make sense if I absolutely wanted to sell.

Renting even at a loss for the short-term (refi in a couple years w/ month down) seems the best solution.

Just looking for some feedback from those that have been there and done that.

Thanks

Recently refi'd @ 4.75 30yr fixed for $178k

- We've invested about $15k into the house since we bought it

- A sale based on comps could net around $150k, so I would need about $25k to sell the property

- Estimate that property will need about $5k in work to make it 'rentable' (main bathroom needs an overhaul)

- Additionally it will need a new roof in <5 yrs

- Recourse state, also I want to buy a property in my new location so walking isn't an option

We are anticipating moving out of town the problem with renting is that we would likely eat about $100-$150 a month on the mortgage - this takes into account similiar rentals and property mgmt. (10%)

Trying to anticipate other maitenance is difficult, I realize I can deduct costs, depreciation, etc. and this may help makeup the difference.

So basically with an outright sale I am eating about $40k (including sunk costs)

With renting I am eating about $1800 annually just on the payment differential alone.

Any input?