I do not know your market...(disclaimer!)
1. Talking with a CPA about the tax consequences of keeping it as a rental or selling...project out 5-10 year4s)
2. My wife and I became accidental investors that way. It was the best move we ever made!
3. Proverb from the bible: Wise is the man that uses the counsel of many. Get good, accurate advice, talk with some Realtors with investment property experience.
I Have had rental properties for 25 years. There are many positive aspects as well as some negative. Karen Gallop 336-988-3181
If you need any help just let me know.
Coldwell Banker Triad
The first element is the market for townhomes in Greensboro. How much could you sell it for now? And would that result in your bringing money to settlement? Or would you end up with some cash? Similarly, what would the rent be for your townhome? And would that result in a positive or negative cash flow? (Without going into details, recognize that you'll have a lot more expenses than just PITI (principle, interest, taxes, and insurance). You'll have repairs and upkeep. You should account for potential vacancies. So that's the first set of questions: Can you afford to sell now? And, if renting, what would your cash flow look like?
The next set of questions deals with your own finances. What would your financial picture look like if: (1) you sold now, (2) you attempted to sell now, but were unable to (i.e., vacant property for 4-6 months), and (3) you rented the property out for a while? Hypothetically, let's say that you could sell now and break even...versus renting out for a $300 a month negative cash flow. How long could you tolerate the $300 a month negative? (Yes, on your tax return, it's probable that losses on the rental could be deducted from your income....check with your CPA....but that could be a very uncomfortable position to be in.) And be careful of thinking, "Well, $300 a month isn't great, but I'd like to hold out for the market upturn, when I'll make all that back." A lot of people facing foreclosure today thought the same thing...that a market upturn would correct their poor decisions. It didn't work. Yes, the market could turn around next spring...but (personal guess, and I don't have a crystal ball) I wouldn't bet on a market turnaround for another 3-4 years.
So: Check with a CPA on how those choices would affect you. Look at your own financial situation, both factually and emotionally (what would you be comfortable with?). Check with 3 Realtors to get their opinions on what you could rent or sell the townhome for. Then decide. Having said all that, my personal suggestion would be to strongly consider selling now, if you can afford to. But, please do your due dilligence.
I would be more than happy to provide you a property analysis and marketing paln for your townhome. It will be helpfull in making your decision.
1. Your mortgage with taxes and lanlord insurance
2. Vacant months (your mortgage divided by 12 for every month your home vacant)
3. Expenses related to maintenance
4. Expenses related to excessive damage when the tenant vacates (new carpet / paint)
5. Expenses if you hire a property manager or an agent to find a tenant
6. Utilities (If you decide to pay water / sewer, cable)
Total up your expenses for a month and if you can make it work at the rental rates in your area, then its a good deal. If you're loosing a little each month, make sure its not more than if you had to take a loss one time. Hope this helps