Chris, Home Seller in Hollywood Hills, Los...

Should I sell or rent my 2 bed/ 1 bath in Laurel Canyon?

Asked by Chris, Hollywood Hills, Los Angeles, CA Thu Feb 25, 2010

We live in Laurel Canyon, very close to Wonderland School. My wife and I want to move to the beach. She we sell our house quickly, or rent it out for a year or two and see if the market bounces back?

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BEST ANSWER
Hello Chris,

Inventory is super low in the Hills right now. The rental market is also good. It depends if you are upside down on your house or not. If your not then your buying power will be stronger now even if you sell for less. The best way to determine it is to do a CMA. Your home sounds like a great starter home and with the first time home buyer credit that's the market that is moving now. I say sell if you plan to buy.

Good luck and if you need an analysis, let me know.

Best,

Monique Carrabba and Joe Carrabba
Broker, Attorney and Realtors
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Fri Feb 26, 2010
If you don't have to sell due to imminent financial stress, then keep and rent your property.

You don't need an agent to tell you that the current real estate market is still in distress and it is a buyer's market. So if you list your home now, you won't get the best and higest offers...quite the opposite.

FYI - currently, it is also renters' market so try your best for break-even cashflow with your target rent. There are many rental properties on the market and current landlords are offering lower rents or other incentives to keep their tenants.

Take a drive around Laurel Canyon neigborhoods and check on Craiglist.org for available rentals in the area to help you plan/set your rent rate. Or, you could hire a property manager for an average cost of 10% of the rent rate or a fixed fee base for selective services.

I hope the information is useful and let me know if you have any question.
2 votes Thank Flag Link Thu Feb 25, 2010
If you want a free CMA, give me call (626) 731-9563 or email me at lisaf@rehcorp.com. You can base your decision after you review the CMA and compare it towards renting to see if it's sensible to rent.
If you would like to rent it out, I can also help you find renters. Give me a call to discuss your options or any questions you may have.

Best,

Lisa Fong
http://www.TheBestRealtor4U.com
Tel. (626) 731-9563
Email: lisaf@rehcorp.com
0 votes Thank Flag Link Wed Feb 11, 2015
If you don't have pressure to sell the property right away i suggest then you keep and rent your property to generate an income.

The real estate market is improving but it is still definitely a buyers market. (Meaning you wont get the highest price for your home if you sale it right now, as opposed to maybe selling it in a year or 2)

FYI - if your looking for a good way to rent out your home, try listing it on a reliable listing website. I have used http://www.renthunterz.com before. I usually go with Rent Hunterz because they do not charge any lsiting fees, unlike other websites and you will get a ton of quality leads for potential renters.

I hope the information is useful and let me know if you have any question.
0 votes Thank Flag Link Wed Feb 11, 2015
Definitely selling at this time would make a lot of sense.

John McQuilkin
Priceless Experience You Can Count On!
310-467-9555
0 votes Thank Flag Link Tue Feb 10, 2015
Did you sell your house yet Chris?
You'd probably get more today than in 2010 :)

Neil Kenes
Keller Williams Realty
323-424-9442
kenes@kw.com
DRE # 01916076
0 votes Thank Flag Link Fri Sep 7, 2012
There are a few of factors you have to consider.
1) Is there enough equity in the home to sell it and clear the debt including closing costs and commissions? (if there is little or no equity your house may require a short sale )
2) Is the payment affordable for you without renting it out? (If you move and you can’t get a renter could you afford to keep the house?)
3) Would the rent cover most or all of your mortgage payment? ( If your over head is high you need to consider is it worth renting out if it only covers ¼ or a 1/3 of your payment.. remember your home will have wear and tear which can give you out of pocket expenses you don’t want.)

Realistically the market isn’t going to recover for a few years, only you can decide if it is worth keeping or selling. It is difficult to advise you completely as we have no way of knowing your financial status with the property.
If you own it free and clear or your payment is $1,200 and you can rent it out for $2,000 and you are under no financial stress, rent it out.
If the property has no equity call one of our specialist who deal with homes in this situation.

310-424-5053
0 votes Thank Flag Link Tue Dec 28, 2010
Hello Chris, many areas have increased in value for nearly 5 months straight, I would highly recommend getting a detailed home market evaluation of your current home before you make your decision. Now is definitely a great time to buy and prices are increasing in many areas near the beach. The interest rates are also at some of the lowest rates in over 25 years and this will allow you to buy more, basically making your money go farther. Contact me and I can prepare a free detailed comparative market analysis for you. Also, feel free to search my website for all available properties, if you tell me what areas, how many bedrooms, bathrooms, and price range you are looking for I can send you all the properties that meet your requirements.

Have a great day,
Heather Paul
Coldwell Banker
424-625-1037
0 votes Thank Flag Link Tue Dec 28, 2010
Hi Chris, First of all I would advise to analyze your financial suituation and see how much you would net from this sale, That can be accomplished by doing a BPO/CMA on the property. I can offer one free of charge, this will give you an accurate amount.
Quite honestly, I do not see the market bouncing back in two years, In my opinion I think 3-4 years, so If you can afford to keep it and then sell after that time, I would say hold onto it. Otherwise, sell and pick up a steal by the ocean. Good luck!

-Henry Vega
323-833-6466
HenryVega@rodeore.com
0 votes Thank Flag Link Tue Dec 28, 2010
Thanks for all of the feedback. It is very much appreciated!!!
0 votes Thank Flag Link Sat Feb 27, 2010
Hi Chris,

That is a great question and as mentioned, depends primarily on your financial situation. I am currently selling a 2 bedroom + 1 bath foreclosure on Willow Glen Rd in Laurel Canyon and there is a tremendous amount of interest in the home even though it is not currently available yet on the open market. It really depends on the style of your home and location.

If you need to sell in the next 3 years, I would look at comparables and strongly consider putting your home on the market now (especially if you need the equity in your home to make another purchase - in this case you may sell for lower than you may want but you will make up for it when you buy). If you don't need to sell I would rent and hold for the long term. There is no telling when the market will bounce back, however a buy and hold strategy over the long term can be a great way to go if you can afford to hang on to your home.

I have sold and leased several homes in the Laurel Canyon area. Let me know if you would like comparables on both and I'd be happy to provide them.

Sincerely,

Grant Linscott
Keller Williams Realty
Estates + Investments
323.333.6222 cell
grantlinscottproperty@gmail.com
0 votes Thank Flag Link Fri Feb 26, 2010
Dear Chris,
You can sell your house quickly, but in order to do that the price might not be what you hoped. Homes that are listed below value normally sell fast and have multiple offers..some in all cash. If you want to get a higher price for your property, I would advise leasing until the market stabilizes.
0 votes Thank Flag Link Fri Feb 26, 2010
The market will bounce back. When? 1 year? 2 year? 10 year? No one knows for sure but real estate will likely appreciate in the future. If you can afford to rent it out and hold it, and still qualify to purchase another house this seems to be desirable. Although no one knows for sure it seems reasonable to assume that market values today are lower than they will be in the future and therefore retaining the property would probably make sense. But, if qualifying for two homes is impossible or coming up with another down payment makes things too tight, even in a down market it might be smart to sell and get the house you really want.

If you need assistance we can run the numbers and get you pre-qualified.
Web Reference: http://www.targetrate.com
0 votes Thank Flag Link Fri Feb 26, 2010
Hello,

First let me tell you that you live in fantastic area. I love Laurel Canyon, I have lived in and around that area for many years. The advice that others will be giving you about contacting a good tax professional, will of course be one that I would advise. I think it comes down to resources and whether or not you want to keep your home as a investment property.

Let me explain: Properties in both areas have gone down significantly. Even though homes in the Laurel Canyon area have gone down, so have the properties in the beach areas. You will find some really good deals right now in the beach areas. Eventually the market will improve, but it is going to take a while, If you can afford to tie up your resources, then you might want to consider the property as an investment. But if you would rather use the money to help with the purchase of the beach property and that is where you really want to live, It could be a great opportunity for you. A good agent will be able to give you a market report on your property and provide you with a good idea of what you can expect to get for your home right now, Also, what you can expect to pay for home in your desired area.

I would be happy to provide this information to you with no obligation on your part. I can also give you more detailed advice about your situation. Feel free to contact me at any time. I am easy to talk to and know the area well

Best Wishes, Blaine Richards - Keller WIlliams - Hollywoof Hills - 310-598-8634
0 votes Thank Flag Link Thu Feb 25, 2010
This is a good question.

I believe the answer must be taken on a case by case basis, as I don't know your financial situation, long term goals, etc. Are you planning on leasing at the beach or buying, and if buying, do you have the down payment without selling your Laurel Cyn home? All of these questions must be considered. Now is a great time to buy, so would encourage you to take advantage of that if you are able. We are coming into the spring and summer seasons, which are prime selling time, so may be wise to take advantage of that timing as well. There are plenty of buyers who have been waiting and looking, ready to pull the trigger once they find the one. The right properties at the right price are selling currently with interest rates at all time lows, federal tax credits available, etc.

If you can afford to purchase another property and can get a good lease amount that will cover your mortgage it may be wise to lease while the market continues to go back up. I have done quite a few of high end home leases recently, so have seen this strategy in action. But if you can't purchase another home without selling, especially if you are moving into a more expensive house, and have equity in your home, now may be a great time to sell and then use your negotiating power on the other end. For example, If say you sell a $600,000 at 10% under where the market may or may not be in a couple years, but purchase a $1M home 10% under that rate now, you actually made $40K in the deal. Also, the available financing and interest rate you have and could get on a new property must be taken into consideration.

Sorry to not give a straightforward easy answer, but everyone's situation is different, and there are pros and cons to both strategies I believe. Let me know if you would like to provide more information and discuss your particular situation further Chris.

Best Wishes,

--
Eric Smilay
Smilay Properties
Direct# 661.600.7463
Fax# 323.466.1788
http://www.smilayproperties.com
twitter: @esmilay
Web Reference: http://smilayproperties.com
0 votes Thank Flag Link Thu Feb 25, 2010
If you decide to sell I can help
call or reply back

Rafe
0 votes Thank Flag Link Thu Feb 25, 2010
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