My advise if you're not a professional landlord and did not buy the property as an investment then you should stay out of the rental business. Otherwise be prepared for some surprises and make sure you have a good amount of liability insurance.
If you're still wanting to Lease-to-Own your house, let me know. My associate and I have people looking for single family houses in that area. She always has people calling her for Lease-to-Own houses but we don't have any to offer them.
And if you know of any other people that need to get their houses leased out by QUALITY TENANTS, instead of typical renters who come and go.....PLEASE LET US KNOW!
Offer it as a Lease-to-Own house. There are ALWAYS more Lease Purchase buyers than there are sellers no matter what part of the country you live in.
You get the benefits of having your home leased WITH the possibility of having it sold at the end of the lease term. Make them responsible for ALL maintenance (as this is their trial run at homeownership) that your insurance does not cover. You can also throw a RENT CREDIT incentive to your tenant/buyers each month so that they have more desire to pay their lease payments on time.
You can make this a Win~Win for them AND you.
Most Realtors don't mention these type things because it usually doesn't end up being in THEIR best interest to offer a Lease Purchase.
Do your research and consider selling as a Lease-to-Own.
Hope this gives you a new perspective.
Depending on the size, location, & condition of the home, homes around 95118 are selling from the mid-$500's up to mid-$700's. If you have one of the typical homes in the area, $599k is the sweet spot in the market, and is getting a lot of activity. Once again, it is difficult to respond without having any info about the house.
Let me know if you would like a market analysis of your home. The best way to make a decision is to have good information and evaluate all sides of the equation.
In regard to your question concerning a general value for homes in the 95118, a Comparative Market Analysis (CMA) gives you the best representation of market price/activity/trend direction - for the specific property details you search on (your home's details). DO NOT rely on median and average-based statistics, these measures are meaningless for targeted selling/purchasing as they have no regard for any of the specifics you may be comparing and can be skewed by segments of market activity not matching your individual situation. A buyer/seller should look specifically at the targeted segment of properties that match their search criteria for the information to be meaningful. Generalized stats are easier to come by, but that doesnâ€™t mean they should be used to make one of the most important financial decisions of your life.
There are a few thoughts that crossed my mind when reading your post that I'll just throw out there void of understanding your complete situation. The primary purpose of the following questions is to consider options you might want to explore:
1) Do you have need to sell, or do you want to sell? The name of the game in Real Estate is property accumulation.
2) Have you considered a refinance to lower your carry cost of the property, which also might make you more competitive in the rental market?
3) Where will you invest if you do sell?
4) Is this a still a primary residence for you where you have the $250K tax exclusion, or have you been treating the property as a rental where you could exercise a 1031 Tax Exchange to avoid the 15% Fed cap gains, 9.3% State cap gains, and 25% Depreciation Recapture taxes?
5) After reviewing competitive market rents, what would your return on invested capital be for this rental? Meaning, take your net profit per year and divide this by your total invested capital (do not include the loan balance, just your principal balance. Next, assume you do sell right now. Will you be able to reinvest the proceeds into an investment that meets or beats the return on invested capital?
Food for thoughtâ€¦.
Not having the particulars available location, condition, features (amenities) and schools will leave open quite a bit of opinion here. Averaging the rental range is $2200/month. Every month. How long does your vacancy affect the security of our equity position? Basically, when does it begin to put you in a loss position?
Driving back and forth to work and doing the school drop off, my office is at Harwood and Blossom Hill, I have been surprised at the rate at which some of the homes in poor condition are selling. The median price for the average 1200-1800 square foot 3 bedroom 2 bath home is $518k since January. 51 have sold.
The highest was just over $700K.
I hope this helps a little....I know it is very difficult today to make the decision in either case. If you have more information tp provide the resulting answers will only be more accurate.
I have witnessed a slowing rental market.
In addition to the fine comments Linda has made below, as with all properties--renting or selling--the key to success if properly pricing your property. If you are asking too much for the rent, it may take many months for the home to be occupied by a renter. Since you've actively marketed the home for about one month now, it's time to consider a rental price adjustment. Working with a Realtor will help you determine a proper price for the home, but it you are doing this alone, take a few minutes to review the ads of other homes for rent, look at a few properties and see if your home's rent is "in the ballpark." If not, it's time to adjust.
If you feel that you won't be able to recoup enough money from the rent to make owning your home a worthy investment, check the comparables in your area to help you decide whether or not selling is viable option. Working with a qualified real estate professional can make the process easier by providing you with comparables and calculations to determine the "value" of your property as a rental versus a sale.
Good luck and happy house renting!!
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
Depending on the price you are trying to sell your home for, there are many buyers in the Cambrian area. Folks are price sensitive, but good properties are selling!
The decision to sell or rent is based on your needs. If you have owned the property for a long time, you will still be making money!
I am very active in your neighborhood. Please let me know if I can answer any other questions for you. I can definitely give you good insight into the Cambrian market.
Alain Pinel Realtors