For Rent in 22193>Question Details

Roddyboy, Other/Just Looking in 22193

I have a home thats 100k underwater, can i still rent it out for what i pay in mortgage?

Asked by Roddyboy, 22193 Thu Oct 14, 2010

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As long as the rent covers the mortage (and taxes, don't forget) I don't see why not. You want to be sure your are compliant with local rent regulations, but if the shoe fits, wear it!
1 vote Thank Flag Link Fri Oct 15, 2010
Go to rentometer.com. You can find out what the fair market rent is in the neighborhood of the property. Then find a suitable tenant. If the rent the tenant pays can cover your mortgage, its a win-win situation.

Best of luck to you!
Web Reference: http://www.DesariJabbar.com
1 vote Thank Flag Link Fri Oct 15, 2010
Of course, as long as the rent cover the mortgage. Some just pay the difference to keep the property and the good credit.
You could be in a very desirable area.

I had a client that lived about 2 hours from the Cities and his job was right in downtown Saint Paul, so renting his home and rent in the cities, was just not finance decition, it was also a motivation to be with his family more time.
1 vote Thank Flag Link Thu Oct 14, 2010
Roddyboy I am interested in a rental. What would the rental fee be to cover your costs? Could you tell me the number of bedrooms and baths and where is the property located?
0 votes Thank Flag Link Tue Apr 1, 2014
Easy answer is rent for what you can get - market price.

Sometimes sellers ask me about renting a negative equity property, and moving to yet another home.
It is sometimes possible, but the net might be tough to justify. i.e. you may lose even with doing a lot of smoke and mirrors.

Banks are not too keen on that. You need good "one on one" advice, since as you have heard, the interest rates for investment properties are not as good as for your primary residence.

Give an agent a call with your ideas. Good ones have seen it all and suggest proper directions.

Best-
Jay
Web Reference: http://TalleyHurstHomes.com
0 votes Thank Flag Link Thu Oct 14, 2010
As Terry said fair market rent for your home may not be equal to your current mortgage payment. In our area that varies widely based on the size, location and condition of your home. You didn't indicate whether you want to rent your home because you are leaving the area or their is a change in your financial circumstances making your current payments unaffordable. If you need assistance in figuring out the FMV for a your home as a rental feel free to send me an email.
0 votes Thank Flag Link Thu Oct 14, 2010
Rent is usually figured out by what comparable properties rent for. If you have an accountant, I would advise you to talk to your accountant first so you understand the changes in the obligations you will have, in particular to the IRS in switching from residential property to rental income property. If you are behind in your payments or in foreclosure, I think you have a legal and ethical duty to advise potential tenants that you don't know how long you will own the property. Look in the newspapers and see what similar properties are renting for and decide whether that will cover your mortgage. Then talk to an accountant. Best, Terry Bell, Realtor, CPS RE, Santa Rosa, CA p.s., I always appreciate you taking the time to give a "thumbs up" or "best answer" ! THX !
0 votes Thank Flag Link Thu Oct 14, 2010
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