Home Buying in 95046>Question Details

Rosemary Goff, Home Buyer in Grand Rapids, MI

What do we do with our own home once we buy another house?

Asked by Rosemary Goff, Grand Rapids, MI Tue Nov 8, 2011

Help the community by answering this question:


Wrap it up with a nice tidy bow and re-gift it? It depends on what you want and need to do. Talk with you trusted real estate professional, a tax planner/cpa and financial adviser. Among those resources you should have enough information to know what may work for you.

All the best to you.
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Tue Nov 8, 2011
You actually have a couple of choices. If your lender has told you that you are able to purchase your new home without having to sell your existing home then your in a great financial situation. Unless you are willing & able to rent out your existing home you may have two mortgage payments. If you are comfortable renting out your home, you can begin depreciating the home as an asset in your taxes. hopefully you will be able to make positive cash flow. Cash flow is how you will be able to finance your retirement someday.
1 vote Thank Flag Link Tue Nov 8, 2011
Depends on your personal situation. Sounds like you can afford options. You're lucky, most folks don't have that luxury. You may just want to rent it if you can generate enough revenue to offset your nut. In fact if you can afford it there's nothing wrong with a rental property. It will eventually increase in value if it's in a geographically and economically desirable area.
0 votes Thank Flag Link Fri Nov 11, 2011
Dear Rosemary,
You can see that house, or you can lease it. It just depends upon your local market and what the demand might be. Speak to a licensed Realtor to get the best suggestions!
0 votes Thank Flag Link Wed Nov 9, 2011

Oh My...........

Generally these home are sold at some point before or after the new home is purchased. And if this doesn't work out because of today's economy and housing market woes, many are renting these homes while waiting for better times.

0 votes Thank Flag Link Wed Nov 9, 2011
It looks to me that you are moving to Califonia, right? If so I would sell my home in MI. and NOT rent it, here is why, you are to far away to ensure that the property is being maintained,. What if something breaks while you are out here? The rule of thumb for most investors who have rentals have them no more than 45 min. to 1hr. away. There are exceptions to this, you rent to a family member who you trust, you do not plan to stay in cal. and plan to move back, etc: Of course I would check with my cpa/financial adviser to see what makes most sense for you first, but other than the above I would SELL.
At your service,
DRE# 01397256
0 votes Thank Flag Link Wed Nov 9, 2011

well............let's see

you could always...........sell it!... rent it!... or keep it as a weekend getaway for when the inlaws come!

The biggest question is.............CAN you and DO you want to buy another home while still owning your first home?
Can you afford to carry 2 homes, or do you want to be a landlord?
0 votes Thank Flag Link Tue Nov 8, 2011
I would rent it out until the housing market is in better shape which could take at least a couple more years in my opinion. Once you see home prices going back up you could either sell it or keep it as a rental, which ever makes more sense to you.
0 votes Thank Flag Link Tue Nov 8, 2011
What do you want to do with it? You could rent it. You could sell it. You could do a lease option. If you want to sell the house I would recommend doing it vacant. You tend to get more showings and it shows better. Also, vacant house tend to attract more selling opportunities such as lease option or contract for deed.
0 votes Thank Flag Link Tue Nov 8, 2011
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