Home Selling in 48124>Question Details

Ashaburtell, Home Buyer in Carleton, MI

Our house is about 20K underwater. We are planning to move. What is the best option for this house: rent it out,or sell it & pay the difference?

Asked by Ashaburtell, Carleton, MI Wed Apr 11, 2012

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7
Being a landlord is not easy, but renting it out is one way of not having to come to the table with$20 -$30,000. I would hate to lose that kind of money
0 votes Thank Flag Link Sat Mar 9, 2013
It depends on what is best for you in the long run. What if during that time that rental helped you pay the 20k? You have many options and anyone of else would love to assist you in finding the best one.


Vera
0 votes Thank Flag Link Mon Apr 30, 2012
If you are planning to take out a mortgage on a new home, you would have to qualify carrying all debt, including your current mortgage and the new mortgage without using rental income. Guidelines are now very strict about turning a primary residence into a rental property, the first being that you need to have 30% equity, which you obviously don't have.
0 votes Thank Flag Link Wed Apr 11, 2012
Depending on proximity of your next move, my advice is to rent it.
0 votes Thank Flag Link Wed Apr 11, 2012
It depends on if u have the money to bring to close the deal on your current house or if u want to become a landlord until the value of ur house is closer to the payoff once it has been rented out for a while. Some people prefer not to be a landlord and others don't have the money to close on an underwater house. If both options are viable for u I think it becomes more of a financial decision, u can always hire a management company to take care of the rental house so don't b afraid to b a landlord.

If u need any additional help please let me know

Thanks. Joe Bertera. 248.521.6443
Web Reference: http://www.joebertera.com
0 votes Thank Flag Link Wed Apr 11, 2012
To answer properly, I would have to know far more as it can be complicated. Things like your personal financial condition, income, costs of homes and rentals in both areas (where you are now and where you are moving), and also the trends in real estate in both areas. And then there are your personal preferences to consider - would you accept renting where you will live?

If you rent it out, you will have to worry about things - what if something breaks and repairs need to be made? What if the tenants don't pay you? What if they trash the place? that sort of thing. Will you be able to deal with these things from where you will be living? If the answer is "no", sell it and take your loss now. In general, I am no fan of absentee landlordship. If you hire a trustworthy professional (if one is even available) to take care of those kind of things, the worries will be far less, but so will be your revenues.
0 votes Thank Flag Link Wed Apr 11, 2012
If you are looking to buy another house you will make up the loss by saving on the new home. If you can afford to buy a second home without selling this one, then renting this house out is a good option as the rental market is strong.
Please call me and I can help you with the variou options.
Madhuobero@hotmail.com
248-875-6739
0 votes Thank Flag Link Wed Apr 11, 2012
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