Assuming you haven't refinanced since you bought the house (or refinanced before 2005), you should probably be able to rent it for less than your mortgage payment. I have a 3BR townhouse in Glen Burnie that is rented for $1550 and, generally (need to know your specific location for a specific idea), a Piney Orchard 3BR townhouse shouldn't be too far off especially when the newest apartment community next to Arundel Mills is starting from $1145 for a 1 BR apartment.

My opinion (without having specific knowledge of your situation) is to keep it as a rental as long as you have good tenants and positive cash flow. When you are ready to sell, you can do a 1031 exchange and defer taxes indefinitely.

Sun Mar 23 2008, 11:08

Good Morning Marcie,
Check with your accountant about Capital gains. If you can sell and not pay the tax, I would sell now. If you are realistic in the rent, you should be ok to continue renting and wait for the market to pick back up. Although things are not as bad in Anne Arundel County as other areas, I am sure you don't want to pay a mortgage payment on a vacant property. Either way Piney Orchard is a popular area. If you would like to send me details I would be happy to let you know what rents are, what the sales prices are and how long the average days on market are.
Kim Mills

Sun Mar 23 2008, 07:26

Hi Marcie:
Anne Arundel county has continued to do reasonably well in the market. I would be more than happy to let you know what range your town house is likely to sell if you send me an e-mail with the address and let me look at the place. When owners live in a property as principal residence for 2 out of the last five years, they are entitled to the capital gains exemptions -- do check with a tax advisor or IRS on specific details for your situation. The rental market for Piney Orchard is excellent and I would be surprised if you have problems renting it again if this is the way you would like to go. The selling market is a bit slower but quite reasonable. Prices in Anne Arundel county have come down a bit but due to the lack in competition from new home builders as well as a very low rate of foreclosures, overall prices have held up reasonably well.

Sun Mar 23 2008, 06:11