Of course if the time has come that your mother doesn't want the worries of being a long distance landlord, then perhaps it is better to make a clean break and sell this home as she moves to Florida. Beach Homes will always be in demand so selling at the right price in today's lower mortgage rate market should be easy. If you would like a free Comparative Market Analysis of the value of this property, please call me, I'll be happy to help you establish a fair asking price!
Certifies Short Sale Agent
Coldwell Banker- Casa Bella Realtors
There is a market for year around, as well as seasonal (summer) rentals in Ocean City. Being a landlord is a business and expect that there may be maintenance issues to deal with.
There ARE sales taking place in Ocean City, with prices VERY dependent upon the condition of the property.
You would be wise to get a price opinion on the property and weigh the need for the proceeds against any plans you (or any family) might have for the property over a longer term (say 5-7 years). At the same tine ask for rental comparables, both yearly and seasonal, and assess whether you want to become a landlord.
The more information you gather the better your ability to make the right decision.
James I. (Jim) Marshall, CRS, GRI, e-Pro
Prudential Fox & Roach REALTOR (R)
Ocean City, NJ
email : firstname.lastname@example.org
office : 1 - 609 - 399 - 0066
cell/pager : 1 - 888 - 602 - 3243
If you want to get in the rental business for her (she is not going to be able to handle the property from Florida) you might do so. Rental property is a business. General management, inspections, maintenance and emergency issues might all be contracted out but they are not without cost and the net rental profits may be slim. There is always the capital appreciation that comes with property ownership, especially at the shore but that is a long range proposition. Your mom will probably not benefit from it although her estate might.
On the other hand, the profits from a sale, invested wisely, can yield better returns that the average real estate venture. The funds would also be much more liquid and would also be much easier to tap incrementally, should your mom need cash to maintain her appropriately in Florida or elsewhere.
There are trade-offs, obviously but unless you have a yen for property management and of property miles from where you live, Iâ€™d get out now.
If you are worried that you will miss a great rise in property value, remember no one knows if or when that might happen and you could just as well see a similar rise in any other investment that you might make for your mom.
I know that this is a disruptive and stressful time for you both. I wish you both well.
Make sure you instruct the realtor to carry enough of a deposit and restrict rentals to families only or over age 25.
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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