Kahaku, Home Seller in Los Angeles County, CA

I recently purchased a brand new home in the Santa Clarita Valley (3 bed & 2 1/2 bath) Due to new circumstances, should sell (cut our losses) or

Asked by Kahaku, Los Angeles County, CA Fri Jan 22, 2010

rent?

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Answers

8
Really what you should do depends on the market in your area, however if you do decide to go the renting route there is a decent amount of money to be gained but there are also some risks. Make sure you research the option before you dive into it. Renting isn't something you can just do in a day. Tenant screening is important to cut back on these risks but there is always the possibility of property damage and unpaid rent.
0 votes Thank Flag Link Tue Nov 1, 2011
Dear Kahaku,
It depends upon the rental market in your area. I would recommend that you begin working with a local realtor. Send an email to me, if you need a referral.
0 votes Thank Flag Link Mon Feb 8, 2010
K
I suggest talking with a broker that works in your area. In most of So Cal we are seeing a significant drop in inventory levels, which means that although the overall economy is keeping prices down, homes that are priced right will sell.

FInd out what the fair market value is for your home and ask the broker to run the numbers for you. In most cases if you purchased your home in the past year, prices have actually started trending upward, so you might be able to sell for about what you paid.

OTOH, keeping it as a rental might be a good idea. If you want to look into renting, check your mortgage contract for non-owner occupancy. ALso, check with your CPA regarding the impact on your tax situation, both when it is a rental and at the time you sell. We rented our house when we couldn't sell for a loss and kept it 18 years as a rental and made a lot of money, so it's not the end of the world.
0 votes Thank Flag Link Sat Jan 23, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
It depends on how you are doing financially and what you want to show on your credit. If you short sale it will still negatively impact your credit but will be much less than a foreclosure. Check out my website here at http://www.vgrouphomes.com/atj/user/AdditionalGetAction.do?p… for information regarding short sales, foreclosure, and loan modification.

John & Sarena Villaescusa
Keller Williams Realty
Owner/Realtor/Broker
Cell: 562-818-2671
Email: Johnv@kw.com
Website: http://www.VGroupHomes.com
Web Reference: http://www.VGroupHomes.com
0 votes Thank Flag Link Sat Jan 23, 2010
It all depends on your long term goals. Is there a financial hardship? What are your long term investment goals? Do you see yourself living in the home again? Is there a financial hardship? Happy to consult with you if you'd like. You can copntact me thru my profile. (No charge, of course!)
0 votes Thank Flag Link Sat Jan 23, 2010
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
First assess what rent the property can fetch. Contact at least three property management companies and get this information. From the rental income, deduct the property taxes, mortgage, HOA dues if any, insurance and any property management fees if you do not want to manage your rental property. The residual would either be a positive or negative number. If positive, rent it. If negative, compare with the loss you would take when you sell it and then make your decision.

We manage properties in the Santa Clarita Valley. If you want to discuss your options in detail, let me know.

Bob Khalsa
President & Broker
United America Realty
U.A. Property Management
scvbroker@gmail.com
661-513-4433
0 votes Thank Flag Link Fri Jan 22, 2010
Hi Kahaku,

I'm sorry you're going through this. It's not fun to figure out these kinds of things, but I think you're doing the right thing by figuring our what is in your best interest now rather than later. Everything is boing to depend on your own personal financial situation. I'm not a financial expert, but I would suggest you need to find out what you can get for rent and see if that's enough to get you through every month. If you're negative, can you cover the difference? And how long will it take for you to catch up the negative? Or is it better to sell it now and get it over with? Or maybe get yourself into a better investment property? Lot's to think about. Only you can figure out what numbers you can live with what makes the best sense for you.

Is this your primary or investment property? If it's your primary, where would you live to rent this out and how much would your rent cost? It's all a number game. I wish you luck and I know you'll get through this. Good luck!
0 votes Thank Flag Link Fri Jan 22, 2010
How's the rental market in your area? If you are able to rent it out and cover your monthly expenses then maybe it would be worth it and then sell when the market values improve.
0 votes Thank Flag Link Fri Jan 22, 2010
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