The only way to answer your question of whether you should cut your losses now or later can only be answered by you. Your loss in terms of the responsibility of being a landlord, your time and liability, the risk of holding to the house with the assumption of market improvment is just like predicting that the stock market would definitely go up next year without a single doubt.
Best scenario for you is to have a consultation with a Realtor and assess your potential loss if you sell today. Rather than focus on gain or loss, you might want to focus on how much cash you would get from the sale, or how much cash you would have to pay to close if you have negative equity.
Those are my thoughts... sorry if they are drawn out.
Good luck to you in any case,
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
Winner of Seattle Magazines 5 Star
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Two options if you continue to rent are:
1. buy a home warranty that covers major repairs and some replacements (check out American Home Shield). When a covered item breaks, the tenant calls an 800 number, and a repairman is sent out. The serice call cost is $100. Anything above that is paid through the insurance. If certain items can't be repaired, they are replaced or an allowance is given for replacement.
In our leases, the tenant is responsbile for repairs up to $100 per occurance, so the landlord wouldn't even have to pay the service call. The insurance, for a year, will cost in the $500-600 range, dependng on what coverage you select.
2. If you don't like "being a landlord" - you can hire a property manager - my company gets 10% of the rent to handle that - collect rent, oversee repairs, and handle all other management responsibilities.
Well I certainly hear you about not enjoying being a landlord - you are not alone.
You mention taking a loss considering what you put down on the property and what you have put into it .I'm curious as to what you think it would sell for and on what are you basing that information? Has a current competitive market analysis been prepared for you by a Realtor (or perhaps more than one?). If not, I'd be happy to do one for you. Just know if you are basing your projected sales price on your assessed taxed valuation or a figure from some other website, just know they are seldom accurate. I
The market started picking up last year and inventory is currently down and prices are on the rise throughout the region, some locations of course are hotter than others. Renton has had a greater supply comparably, than most however. If your home is located within the Issaquah school district, it may command a higher price point.
Please feel free to contact me if you'd like to discuss your options further. I'd be glad to be of help!
All the best,
Christine Viernes Realtor/Broker
Coldwell Banker Bain -Kirkland