PLEASE pay attention to the HAP guidelines when selling. You mentioned breaking even so you will need to research the %'s that are allowable and reimbursed through HAP. Will your loss exceed 10%? Will that include concessions and real estate fees? Is the sales price within the set % below market value that HAP allows? If you are breaking even and using HAP, you may not qualify for the assistance. Read through the guidelines and get that paperwork in asap if you are going to sell. If you are working with agent, that agent should have a point of contact in the HAP program. Discuss your plans with the attorney/title company you plan on using.
You'll need a rental analysis done and a very good sit down with your agent to review all possibilities. Check out AHRN and base posting services for rentals.
I have sellers involved with the HAP program now and some that have elected to close as normal (bring money to the table) and apply for reimbursement. Before making any decisions, study and confirm your understanding of the rules.
Thanks for serving, good luck with our PCS move. Navy? If you're heading to Norfolk, drop me a line. I'll be glad to help you out on this side!
The answer you are looking for depends on many aspects. If you can rent your home out until the market rebounds you may make money instead of breaking even. You can find many management companies in your area that would be happy to help you.
This is always a difficult decision for military families, because I'm guessing that when you purchased the home, you believed you were going to be there longer than this.
Honestly, my suggestion would be to sell the home if you are going to be able to break even (if that is truly the case). This market is very hard to read, even for those of us who have been in real estate for many years.
The reason I say that it would be better to sell is because I have seen what renters do to property. Unfortunately there are too many horror stories, and not as many happy ones. You may end up losing more in the long run (because of the expense of repairs), than you would have if you just sell the property.
If you were able to stay in the area, and keep an eye on the home yourself, you would have a better chance of having a good experience renting, but being that you are being transferred, you just can't stay on top of it.
Good luck, in whatever choice you make.
Only you and your accountant would be able to answer that question that best suits you. I will ask you this, Is this a home you want to come back to or are you thinking strickly for investment purposes. Once you have that amo, I think it will be an easier approach to the decision.
Good Luck and stay safe!!!
Sit down with your accountant and decide whether or not you can hold the property in the event it is vacant.
If you can, and you choose to, real estate (in the LONG run) is a good investment....
Have you ever seen a bank let you borrow against a Million Dollar "stock" portfolio? No! But, they surely will against a Million Dollar real estate portfolio....
Good Luck....and THANKS for serving our Country!!
Middleton Realty Inc;
Without knowing a little more about your place, specifically your mortgage, and the address (in order to determine current rent you might be able to bring in) it is hard to say what makes the most sense. In a nutshell, if the monthly rent would cover your mortgage with a little wiggle room, it might make sense to rent it. If you rent it, you are probably going to have to hold it for a few more years to wait for prices to come back. If you you are not atleast breaking even b/w rent/mortgage, go with the HAP program. I'll be glad to talk with you in more detail about your situation if you would like.
Rocknhomes of Vanguard Realty