Home Selling in 92612>Question Details

Suzanne, Home Seller in

I own a one-bedroom Watermarke condo. I have seen the current rental prices for my style of unit - $1,600

Asked by Suzanne, Wed Jan 9, 2008

a month. My current mortgage is 1,700 and then $300 for HOA. Is it better to rent and pay $400, or is it better to sell? The current selling prices have been 360,00 (30,000 over what I bought for.)

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7
I agree with Rick. You really need to figure out your total costs and don't forget to incude property taxes and the chance that you don't find a renter for a few months. I would then compare this to the amount of equity you think you could reasonably collect in the future and depending on how long you want to hold the property this will give you a better idea of your burn rate. Hopefully the the numbers will be so significantly different that it will allow you to make the choice between selling and renting. Also, don't forget to factor in the interest rate that you can claim on your taxes.
1 vote Thank Flag Link Fri Jul 18, 2008
It is a tough question. to answer it right, one would have to have a crystal ball. if the price is expected to go up of course you would want to hold it, but nobody knows. If it will go up how long will it take for the price to go up and for how much more. Your expenses is way more than $400/month. you should use the following free online calculator to figure out how much is it you are exactly paying before you make the decision. also make sure you are valuing your property correctly. you can read my other blogs for the answer to that.

http://www.mortgageinvestment.com/Investors_in_Real_Estate/i…
1 vote Thank Flag Link Sat Jul 12, 2008
If you are not cash flowing, and if you do not want to move-in to the property then you should sell it now. Now is the time due to the current market situation and very low inventory, you may be able to sell it a little more than market value! Call me, I'm the local agent:
(949)514-4177 MJ
0 votes Thank Flag Link Mon Jan 21, 2013
I realize this is an old Blog, however, I have a similar issue. Is it better to Short Sale the Condo and or renting? I don't know if the market is improving in Irvine.

I own a one bedroom condo in the Watermarke/ It is 635 square feet and was rented for $1250. per month. It know can be rented between $1550 to $1650 per month. However, I refinanced my mortgage loan and now paying the following per month (Total: $2169)
$1559 Mortgage
$310 HOA
$250 Property Taxes
$50.00 Insurance
Now, lets take a look at the operating costs and the income potential. If you receive $1650 per month in rent your monthly loss will be $469.00 per month. Annual loss is $5,628. Is this a good investment to keep? Should you short sale this property as this property has a burden of $90,000 ( the condo is worth on the market around $194,000 to $200,000 and the amount owed is $280,512).
0 votes Thank Flag Link Wed Oct 3, 2012
Hi Suzanne,
I know that place very well in fact I used to live next door at Ave. One. I now live down the street across from Jamboree still in Irvine. It all depends especially reading everyone's answers all makes sense too. Here are my thoughts:
1) Do you live in this condo
2) is $1700 pm includes your taxes?
3) How is your credit? Can you qualify should you buy another property or move into another if this is your owner occupancy?
4)at 12 months you will be paying out of pocket $4800 py for HOA if you live in it yourself
5) It's not the best time to find a tenant but it's probable with extensive marketing you or an agent can find someone
6) do you have to sell? That area is a great area especialy for UCI students. so if you can get $30K now for it imagine in 3-5 years how much more you can get?
I hope this all helps and it does not confuse you more. I am here if you need help or any question you may have.
Thank you
Nazila
0 votes Thank Flag Link Thu Oct 21, 2010
Hi Suzanne,

Two of my Specialist Associates know Watermarke like the back of their hand. We were talking about Watermarke this week and I remembered your question so I asked them what they thought. If you don't have to sell right now, don't. They have probably 23 other homes, not yet listed, that want to sell there.

Unless you are willing to price it to sell next, which will be lower than current SOLD comps, you are better off renting it out for the time being. Call me if need more specific information at (949) 278-4807.
Web Reference: http://www.OCBeachBlog.com
0 votes Thank Flag Link Wed Feb 13, 2008
Suzanne:

I think it depends on what you are thinking about doing. Are you trying to rent something for yourself, or are you thinking of purchasing a new home?

If you could sell your condo and walk away after all of your costs etc. and either break even or turn a small profit, then you may be better off than trying to hold off until the market gets better. The reason being is, say the market continues on as it is right now, and keeps going down for another 1 to 2 years; once the market has reached "rock bottom" (which who is to say when that will really happen?)then you will also have to wait for the market to come back up and get you back to where you either break even or turn a small profit. It is hard to say without knowing more about your situation. If you would like, you can call and or email me personally anytime for more information on the market and you can also access my website for more information as well.

Sincerely,

Tiffany Mueller
Prudential California Realty
0 votes Thank Flag Link Sun Jan 13, 2008
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