Home Selling in 32904>Question Details

Kim Tomlin, Other/Just Looking in Melbourne, FL

We are military and have to relocate this summer. Unfortunately we bought our home during the peak and don't

Asked by Kim Tomlin, Melbourne, FL Thu Jan 22, 2009

feel like we can afford to take a loss or short sale. We are considering renting it out. How do we get started? Is this a good idea?

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Answers

7
Part of the economic stimulus package includes help for military families that have received orders.
The Department of Defense would reimburse the individuals for up to 95 percent of the loss if the homes were purchased before July 1, 2006. The department could also elect to purchase the homes for up to 90 percent of the fair market value. Please feel free to contact me for more information.
Eric Payne (321) 266-2038
0 votes Thank Flag Link Wed Mar 11, 2009
Great question Kim!

It sounds like you are on the right track, by considering renting out your property. Many responsible home owners like yourself are trying to find the best option when forced with a move in this down market. Renting is a viable option to save your credit and pocket book! Finding a good renter isn't easy. Make sure you get a full credit application and check their credit. Make sure they are responsible, because just filling the house with anyone will prove treacherous. Also, you don't need a property manager. Set up a free checking account (like WAMU) and use it solely for your client to deposit their rent into. This way you can access the money from your new location and you don't have to hear " The check's in the mail!" It will show up instantly in your account when they deposit it. Good Luck!

If you need any assistance in buying/selling, renting out or leasing in Brevard County, POWER REALTY, LLC is here to serve you.

Have a POWER-ful day!
Eric Power
321-514-2155
Web Reference: http://www.HomesBrevard.com
0 votes Thank Flag Link Fri Feb 20, 2009
Kim
From the previous answers you can see that you will have to decide whether it is financially viable to rent out your home or sell it considerably "short". But how much rent could you get for your home on a monthly basis for a 12 month lease. Well if you had a 4 Bed home in The Falls at Sheridan in West Melbourne you could possibly achieve $1.5k per month or if you have only 3 beds and in another sub-divison only $1,000 per month. So if your monthly mortgage payment plus 1/12 of your Taxes and Insurance are near to your possible monthly rental income, then rent. A few dollars (100 t0 200) per month extra cost is worth it in the long run rather than selling short. Hope this helps.
Best Regards

Paul Whitehouse.
Web Reference: http://www.paulsold.com
0 votes Thank Flag Link Thu Jan 22, 2009
Good morning Kim,

I am a certified agent working with USAA and have a few clients in South Florida that are having the same issue with properties purchased within the last 3 years.

You have mentioned 3 possibilities: taking a loss, short selling it or renting it out. You should weigh these possibilities carefully before you make a decision.

1. Taking a loss x Renting it - Does the monthly rental in your community covers your expenses or would you have to come up with money out of pocket? If yes, analyze if you would prefer to lose money upfront or in a number of years.

2. Short selling it. I would advise you to speak to your accountant and/or your attorney to learn what the consequences will be for you and to find out if you are elegible to a short sale.

Coldwell Banker has a very strong management team and I would be happy to refer you to one of our agents. Please let me know if you need any help/referrals.

Good luck,
Carla Rocha
954-895-7341
0 votes Thank Flag Link Thu Jan 22, 2009
Good Morning Kim,

First of all I am a Navy wife and have come across lots of people in your position. Now, how to solve... First of all you need to find a reputable Property Management Company, start out by checking some of the Century 21 offices or real Estate offices in your area, most of them have Property Management companies. I really think renting will be your best option, so long as you are comfortable in who you choose to manage your property.
If you need any help in finding the offices, call me 901-872-2121, I will be only too happy to help!
Good Luck!
0 votes Thank Flag Link Thu Jan 22, 2009
Hi Kim,

You can start by either listing your home for rent online yourself or by contacting a local real estate company that has a leasing department.

Is it a good idea? That is such a tough question to answer. Will your rent cover your expenses or will your cash flow be negative? If a negative cash flow, how much will it be? When calculating your expenses make sure you add your total expenses which will include your mortgage payment and maintenance. Of course, your taxes will most likely increase because you can no longer claim it as your homestead. Also, since you are relocating who will watch the property for you? If you have to pay a management company you will have to include that in your calculations. There are so many other things to consider that I can't cover in this space. Perhaps contacting an agent in your area that specializes in leasing will help you.

Best of luck!

Trey Miller
Prudential Tropical Realty
0 votes Thank Flag Link Thu Jan 22, 2009
Renting it out is a good idea because you will still have the home as an investment. Call a local realtor and find out what the houses are being rented for. If your in a military area then you should have no problems finding renters. Hopefully the rent will support your mortgage or you may have to pay part of the mortgage yourself.

Where are you relocating to? If it is DC, MD, or VA please keep me in mind...

Hope this helps... Coni Otto
Web Reference: http://www.coniotto.com
0 votes Thank Flag Link Thu Jan 22, 2009
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