If not, but if you want to keep the property as an investment and source of savings for you, your interests and your property are best served if you contract with a property management company to manage the rental for you. And yes, there's a fee for that, but that is the cost of peace of mind. Question is, will the income you derive from renting it out be enough to cover your mortgage and property management fee, AND have more you can apply to your savings?
However, if you need additional cash to buy another property when you come back to the Bay area, the equity you have earned on your Tennessee property will certainly help with your costs to buy here.
You may have noticed the prices are starting to go back to where they were in 2004-2005....so who knows where they will be next year and beyond? Do you think you can save AS MUCH and AS FAST as the prices are rising?
Take a look at DQNews' report on prices.....http://dqnews.com/Charts/Monthly-Charts/SF-Chronicle-Charts/
That is a great question.
My first question to you is, would you and your wife ever plan to move back to Franklin TN?
Second question is, relative to your home price, how strong is the rental market vs home sales? I would assess what your ROI is on renting vs the appreciation percentage over this current year.
Lastly, what is it about Franklin or the local infrastructure that may influence you, that the economy in the area will continue to increase over the years to follow.
If you could let me know, I may be able to provide you with some suitable guidance. Thanks
With this information in hand your next step would be to evaluate the "affordable" areas in the Bay Area, including Concord (with careful consideration of work/commute variables) and do a Rent vs Buy evaluations. A experienced local Realtor will help you with these calculations.
The important element to keep in mind is your ability to get a new loan. Lending guidelines are continually changing and currently the focus is on debt ratios rather than credit scores. Keeping your house in Franklin would impact this ratio. Interest rates are creeping up which also impacts your ability to purchase a new home in the Bay Area.
If you really want to own a home in the Bay Area waiting could make it harder or impossible in the future. Something to think about.
Please feel free to contact me to discuss these points in depth if you are still undecided on what is the best decision to meet your goals.
Tracy Parker | 925 389 0645
Prudential California Realty