All Forum Posts by: Pradeep Prabakar Ravindran

Quote from @Account Closed:

Given your property's appreciation and potential rental income, it's understandable you're torn between selling or renting. However, with the projected negative cash flow and uncertainties of remote management, consider the financial strain and risks. If you're confident in the Bay Area's market and foresee returning, renting might offer long-term benefits. Yet, weigh this against potential stress and expenses. Ultimately, prioritize financial stability and future plans in your decision-making.

Thank you. The negative cashflow should not be a big problem for me since I can easily fund it. I am inclining towards holding it for atleast the next 2 years to see how my move works out and keep the house incase I need to return back.

Hi forum,

I am a first time poster here and I would really love some advise on my situation. I currently own a 3Bed / 3Bath duet style home in the Bay Area. I got a job offer in the Northern Virginia area and I am planning to relocate there. I am in a conundrum on whether I should sell my home or rent it out. 

Here are some details that might be helpful

Mortgage - 2920 (2.875% interest rate), Property taxes - 1000 per month approximately, HOA - 450 per month, insurance 150 per month

The maximum rental that I can get for this property would be around 4000 per month. 

From my estimations considering vacancy rates, cost of maintenance etc - I would be at a cashflow negative of around 1300 - 1500 dollars per month. I am also assuming that I will hire a property manager.

My house has appreciated quite a bit since the time I had bought it in 2020 for 870k and right now its probably worth around 1.2million. The house is in a pretty great neighborhood with excellent schools and options to commute to most parts of the bay area and I am confident that I will be able to rent it out soon. 

The area here is pretty desirable and typically houses have appreciated around 5%. Even though the cashflow is negative now, would it make sense to hold the property for potential appreciation ? I am also nervous about my move to the DC area wont work out and I will have this house as an option in case I want to return to the bay area and will never be able purchase a similar home if I sell it.