Home Selling in 92683>Question Details

Thanhduy, Home Seller in 92683

Shoud I sell my house? I just bought it (REO properties) on 11/08 for 385K and spent 10K to fixed

Asked by Thanhduy, 92683 Fri Mar 6, 2009

I am living in westminster orange county CA. I just bought a house (REO) for 385K and spent 10K to fixed the 2 bathroom. Some how now I fell do not like it and want to sell it and go out rent for while then buy an other one. Now if I sell it I could lost 60K. the house righ now is 360K -22k cost of selling. I put a down payment on this house is 175K so my morgate is $1,245M on the 210K loan. After sold I could have 130K left. Should I sell it now? by the way i have 3 kids
Please advise

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14
Hello Thanh Duy,
Here you are facing with two issues, Emotional and Economical. How much "dislike" are you with the current home? if you stay and stick it out for another few years until the market turn, would that be so terrible? and what is the picture of the bottom line if you sell the house, exactly how much you will loose and are there any other options?. Answer those questions then you should have a clearer answer.

If you want to brain storm on these issues, contact me. http://www.mtranrealtor.com
0 votes Thank Flag Link Wed Feb 16, 2011
Honestly, I never suggest people to sell their homes unless they have to. For your situation, I recommend you should rent the home out. There are two benefits to this. First, you have monthly extra cash flow. Your payment is $1,245/mo. I believe you can rent out at least $1,600/mo. Secondly, you do not loose money. You will not loose any money if you don't sell it. A home is a home. You will loose or make a profit only when you sell it. You don't have to worry about the home value or appreciation. But if you want to sell your home. I will show you how to sell your home without loosing any money and having more cash flow every month and will be able to purchase another home also. If you need any assistance, just email or give me a call.
0 votes Thank Flag Link Wed Aug 4, 2010
Hi again, Thanhduy,

Since this thread is now a year old, it would be interesting for you to come back and give us a report as to which course you decided to pursue. Some things have changed in this past year - the value of the original house you bought - the subject of this thread - is now probably worth at least 10% more.

And if you rented it out, and went to a better house and rented it, as well - as I suggested 12 months ago - this recent blog post of mine would be a perfect fit for you:

http://www.trulia.com/blog/bob_phillips/2010/02/are_you_bein…

I hope things went well for you - come back and let us know - especially if they did - go well.
0 votes Thank Flag Link Tue Mar 9, 2010
Thanhduy,

Since you had put a large down payment on the house, you can rent it out and cash flow positively on your house. With the extra money you have on it, you can use it to help pay for your rental. Depending on how big of a place you want to rent, you can start saving money now for the next purchase. If your kids are little, see if you can rent a 2bedrm in the meantime and save the money you have for the down payment. Eventually, you'll save enough money and therefore can qualify for another purchase.

By the way, if your house is near PhuocLocTho then you won't have any problems renting it out. The demands in the area is very good for rent.
0 votes Thank Flag Link Tue Mar 9, 2010
What isn't talked about much is that more than half of REOs are in very poor locations - backed to busy streets, and so on. People might get so wrapped up in the "deal" that they overlook some basic real estate principles, such as "Location! Location! Location!, and end up paying dearly, with noice or some other nuisance, while is probably the biggest reason the house became an REO.

That might not be the case for Thanhduy, but it is one of THE most important factors in purchasing a house. Even if the house is a "screamin deal!" it should still make sense for your family if you're going to live in it.
0 votes Thank Flag Link Sat Mar 7, 2009
I recommend holding on to your valuable investment IF you are able to continue to pay the mortgage and expenses on it. You bought it at one of the best times in the history of our recent real estate market. If you can afford not to "like" your property enough to sell, then you should re-consider even investing in real estate because it could earn you a lot of equity over the years if you hold on to it OR it could loose your hard earned money over night. An option for you and your kids may be to really figure out what you like, know your budget, know where you want to live and rent/move to that location and house. Meanwhile, rent your property out and pay a little to have a management company help you collect rent and oversee your rental. The best option is to personalize your new home until you're comfortable with living there with your family and then begin reaping the rewards of your investment. Good luck.
0 votes Thank Flag Link Sat Mar 7, 2009
I forgot to say that there are no 4 bedroom detached houses for rent under $2000 a month.
0 votes Thank Flag Link Sat Mar 7, 2009
Hi Thanhduy,

You stated in the question that you would rent for a while if you sold your house. By renting yours out till the market gets better, you would get your money back and some one would be helping you pay that rent and the mortgage. I checked and there is no detached houses in Westminster renting for less than $2000 a month.
This is a give and take. You can sell now and take the loss, rent then buy when you think the market is at bottom. Wait till the market comes back some to sell but you will have to pay more for a house at that point.
You can use my web site to check out prices on the MLS. Just sign on and search for what ever you want.
0 votes Thank Flag Link Sat Mar 7, 2009
Rent4Life, no Realtor Pros have stated that it is a "great time to sell AND buy real estate". In South Orange County, California, however, houses in the price range that the original inquirer stated he is in, are selling quickly, many with multiple offers.

That, my Ohio friend, is a good sign that the decline has slowed here - at least in the lower price ranges - which most of us "pros" take as a good sign.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Sat Mar 7, 2009
Hello,
Personally I can't imagine it being a good idea to sell the house in this market. You mentioned that you were going to rent for a while anyway. Here's a thought. Your present loan is perfect for a couple of reasons. First, if you make your house a rental property the rent should more than cover the payment. ( The other reason is because a lender on a house you buy later has guidelines to follow that require 20-30% equity, which your house should still have.)

Then go rent a while. Find another good REO sometime in the future and make sure that you like it better, next time, and that it meets your needs. You should be able to get an FHA loan at that time, with a much lower down payment, and hopefully with a monthly payment that is affordable.

You should be able to get the $7500. tax credit for 2008, although it may not apply if you move out too soon - I'm not sure. You should brainstorm these and other ideas with a Realtor friend, and with a tax specialist.

Good luck to you in finding solutions.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Fri Mar 6, 2009
My house is 4 beds. the problem is if iI rent it out then I won't have money for the down payment of my next house
0 votes Thank Flag Link Fri Mar 6, 2009
You don't say how big your property is but you could rent it out. There aren't too many places you can rent for under $1300 a month so you might get more in rent than your mortgage payment. The difference could give you extra income towards what you would be paying in rent. I'd hate to see you sell and take that a $60,000 hit. Let me know if you have any questions.
0 votes Thank Flag Link Fri Mar 6, 2009
Thanhduy,

That is really a personal choice for you. I would ask you to very carefully consider your decision however. I have lived in Orange County the majority of my life and really don't think that you can rent anywhere for less than $1300.00 a month. Don't forget you can write off your home loan on your taxes, but cannot as a renter. Also if you were a first time homebuyer, then you qualify of the $8,000 credit from the government right now, not as a renter. If you don't want to loose all your equity you can consider selling your home via a "land trust," call me for details.

Good Luck

Joe Homs
Wright Realty Partners
949-625-4533
http://www.joehoms.listingbook.com
Web Reference: http://www.joehoms.com
0 votes Thank Flag Link Fri Mar 6, 2009
Hi Thanhduy,

That is a tricky question. $60,000 is a big hit to take, but iI'm inclined to say that if that's the price you pay for happiness then it may be worth it. At least you'd probably be able to deduct the loss. I'm interested in seeing some of the other resposes
0 votes Thank Flag Link Fri Mar 6, 2009
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