Home Selling in 21224>Question Details

Jared Frankl…, Home Owner in Baltimore, MD

Should I consider selling my home or renting it out? Canton near the Can Company. -2dbr -2.5 bath -1650sq/ft -Current monthly payments are $1,550

Asked by Jared Franklin, Baltimore, MD Tue Feb 18, 2014

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In making this decision you are speculating on the market. You have to consider the APPRECIATION RATE.

For example if you think that the appreciation rate is 3% in Canton and your home is worth $250,000 then you will get an unrealized gain of $7,500 in the next year + net operating income + principal reduction.

Look on rentometer.com to determine fair market value for rents. Rent should be more than your mortgage.

If you sell you could miss out on the appreciation. No one knows for sure what the market is going to do so if you want to minimize risk sell and put your money in the bank and lose money because the banks rates are less than inflation.
0 votes Thank Flag Link Sat Nov 8, 2014
P.S. I own a home in Canton that is 3 blocks away from Can Company so this is something I have large vested interest in and have thoroughly researched.
Flag Sat Nov 8, 2014
Owning property today in Canton puts you in a great position to start building your personal wealth. Rents for two bedrooms with recent updates are well above your current $1550 payments. The questions is where will you go next and how do you plan to finance your next move? If you have enough equity in the Canton property to use a HELOC to borrow funds to purchase a second home that is certainly one option and use any excess cash flow over teh existing mortage to pay down this borrowing for your next home. The upside of keeping the Canton property today is that besides the excess cash over your costs, you will start to gain price appreciation as sales prices throughout teh entire area are on the rise. Just remember that Real estate has cycles, so keep an eye on teh appreciating market and know when teh pull the trigger to sell to maximize any long term gains on holding the property!
0 votes Thank Flag Link Fri Feb 21, 2014
You do not need a realtor for this decision. It will definitely be a cash flow property for you (most likely close to 2k or perhaps a bit over if you list it at the right time of year (May would be great). However, depending on how updated it is you could probably get a good chunk of change for a sale. Really depends on your goals. As a young professional (24 years old) who just started renting out his first property in Fells...I can tell you it has it's headaches but the financial benefit is great.
0 votes Thank Flag Link Wed Feb 19, 2014
Jared, without anyone knowing your complete financial picture, I would hesitate on advising you which direction to go until you sit down with someone. Thank you.
Flag Wed Feb 19, 2014
Also not sure why it says I am in FL, definitely a Baltimore resident.
Flag Wed Feb 19, 2014
I think you should have a Comparative Market Analysis presented to you and sit down with a REALTOR to discuss all options.
0 votes Thank Flag Link Tue Feb 18, 2014
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