Ugg. My tenant - my wonderful tenant who has rented from me for about 6 years and never been late with her rent - just gave me 60 days notice she is leaving. So, now, I have to decide whether to deal with paint/carpet/making repairs and re-renting or selling, OR I could sell cheap to an investor I know and he would take it as-is, I wouldn't have to do anything, and he'd buy it before I ever had to make an extra mortgage payment.
On the one hand, I could easily rent it again doing minimal fix-ups, and even increase the rent. One the other, I could sell it, pay off some bills, and put some money away in the kids college funds.
Decisions, decisions.
__________________
LawyerLady
I can explain it to you, but I can't understand it for you.
Market is hot right now, sell. See what the market value is. If you have to put 10K in for new carpet and paint, that could fetch you 20K.
I could put new carpet in and paint for about $5K, and I would HAVE TO do that to sell. But then there's real estate commission, and the house payments I'd have to make while it is on the market and until closing at $800 a month.
This was my first house, so it's a starter home, we're not talking a lot of money here. We paid more for it than we'd sell it for b/c the market has not fully recovered, yet. I'd walk away with about $20K if I sold it. I originally only put down $3.5K, and then the tenants have been paying down the mortgage for the last 12 years.
In the last 2 years, I've had to replace the appliances, and the house is getting to the age that things will start to go wrong, like the air conditioner, heater, water heater, etc. - they are all 16 years old now.
__________________
LawyerLady
I can explain it to you, but I can't understand it for you.
A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
I still have another rental. The cash flow is nice but not necessary, and it's actually getting to be a smaller amount b/c taxes and insurance keep going up.
__________________
LawyerLady
I can explain it to you, but I can't understand it for you.
I think when it starts to become more trouble than its worth, it's time to sell.
The money you save in insurance alone would probably offset the loss of income.
__________________
A flock of flirting flamingos is pure, passionate, pink pandemonium-a frenetic flamingle-mangle-a discordant discotheque of delirious dancing, flamboyant feathers, and flamingo lingo.
I think you should go ahead and fix it up. If you sell, then i would fix it up to sell. Hire a contractor so you can maximize your sale. Get it in the best shape. Or, if you decide to rent, then get the painting and minor repairs done. If you don't mind being a landlord, then keep it. If it annoys you, then sell it and bank the money.
My advice is dont put too much money in thinking you are going to recoup it. I made that mistake and it was a costly one. Just putvinvwhat you have to for sale or rent.
How much do you think you would lose if your friend takes it "as is"? That should be a factor in deciding what to do.
My parents rented out their home once and never again. Renters just do not (usually) take care of the building and grounds like the owners do... You have had a good renter for 6 years and may have trouble finding one as good as that again. Sell would seem to be the best, but figure out first whether to go as-is or put a bunch of money into it.... How old is the property?
Market is hot right now, sell. See what the market value is. If you have to put 10K in for new carpet and paint, that could fetch you 20K.
I could put new carpet in and paint for about $5K, and I would HAVE TO do that to sell. But then there's real estate commission, and the house payments I'd have to make while it is on the market and until closing at $800 a month.
This was my first house, so it's a starter home, we're not talking a lot of money here. We paid more for it than we'd sell it for b/c the market has not fully recovered, yet. I'd walk away with about $20K if I sold it. I originally only put down $3.5K, and then the tenants have been paying down the mortgage for the last 12 years.
In the last 2 years, I've had to replace the appliances, and the house is getting to the age that things will start to go wrong, like the air conditioner, heater, water heater, etc. - they are all 16 years old now.
You will have roof replacement next. Sell.
__________________
Sometimes you're the windshield, and sometimes you're the bug.
and if you sell now at a lower price than you paid,you have a long term investment loss that will help with your taxes if you have long term investment gains, if you don't have those gains, suggest you hold on to it.
__________________
Sometimes you're the windshield, and sometimes you're the bug.
How much do you think you would lose if your friend takes it "as is"? That should be a factor in deciding what to do.
My parents rented out their home once and never again. Renters just do not (usually) take care of the building and grounds like the owners do... You have had a good renter for 6 years and may have trouble finding one as good as that again. Sell would seem to be the best, but figure out first whether to go as-is or put a bunch of money into it.... How old is the property?
WE built the house new in 2001.
__________________
LawyerLady
I can explain it to you, but I can't understand it for you.
How much do you think you would lose if your friend takes it "as is"? That should be a factor in deciding what to do.
My parents rented out their home once and never again. Renters just do not (usually) take care of the building and grounds like the owners do... You have had a good renter for 6 years and may have trouble finding one as good as that again. Sell would seem to be the best, but figure out first whether to go as-is or put a bunch of money into it.... How old is the property?
WE built the house new in 2001.
Well if you can't sell at this point for a ton more than you bought it for, the hot r/e market has not hit your area. Big decision.
__________________
Sometimes you're the windshield, and sometimes you're the bug.
consider the total amount you'll spend for deferred maintenance--ammortize that out over the years you expect to own the property--but deduct it ALL in the year of the expenses--if the cashflow/debtservice/taxes/insurance is greater than the annualized deferred maintenance by a factor of at least 4, then keep the property--have not sold any income-producing property in over twenty years--we keep it
remember that lost utility/livability = lost income
__________________
" the only thing necessary for the triumph of evil is for good men to do nothing. "--edmund burke
