We wanted to buy another house and sell our current house right now -since the market is slow we are now

Asked by Jj, Los Angeles, CA Fri Apr 25, 2008

We are now thinking to rent our current house - can somebody advice me if it is ok to rent instead of sell our current house to a lower price- our house is currently in North hills,ca

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Paul Cruz, Agent, West Hollywood, CA
Fri Apr 25, 2008
I agree with Jackie, renting your home is a good idea but one other thing to consider is are you ready to become a property manager. If you have owned your home long enough to see its value skyrocket and now come back to earth and still have some untapped equity it is not a bad time sell. Put yourself in the buyers shoes and price your home for today, then you take advantage of some of the good buys out there. You will have your new home to enjoy and there will always be the next upward cycle.
2 votes
Michael Barr…, Agent, Irvine, CA
Mon Apr 28, 2008
Hi there JJ. I agree with what previous people have told you. You need to talk to your accountant. You also need tol earn all about being a landlord. There are some strict housoing laws out there for landlords. I woudld suggest you check out http://www.car.org
There are tax and some liability areras you need to be aware of.
Now is a great time to buy and if you wait a year the prices may fluctuate and you might lose out.
People ares till buying homes even in North Hills. If you would like to know the real facts, such as homes sold, active inventory, days on market averages. please let me know .

Kind Regards
Michael Barron
0 votes
Devon Walton, Agent, Anoka, MN
Fri Apr 25, 2008
Just a thought, you should consult a mortgage professional if you have a loan on your home. Your mortgage may have a clause that makes your mortgage "due in full" if you are discovered renting it out and not living there yourself.
0 votes
Tisza Major-…, Agent, Upland, CA
Fri Apr 25, 2008
Hi Jj,

Thank you for the question. While I can't advise you on the tax consequences of your choice (your tax professional is the one to guide you there), I would be happy to help you take a look at your situation from a Realtor's perspective to see if this would make sense for you and your family. Now really is a great time to buy.

I would also be happy to give you an estimate of the value of your current home and a pretty good picture of what you might net after the sale of your home (should you decide to sell it). If you send me the address I can provide you with a Comparative Market Analysis (CMA) with no obligation. I would also be happy to help you locate another home to purchase either as an investment or as your future family home.

Please let me know how I can be of assistance.

Take care and have a wonderful day!

Tisza Major-Posner, Realtor, IVPG (909) 837-8922 or (213) 392-4084
Web Reference:  http://Route66Living.com
0 votes
Laarni G. Om…, , Orange County, CA
Fri Apr 25, 2008
Hi Jj,

If you do not need to sell and can ride the wave, I will advise you to rent your house especially if the rent will cover your mortgage because your competetion, especially in your area, are REO properties. Good Luck to you!

0 votes
Tara Steinke, Agent, San Diego, CA
Fri Apr 25, 2008
Hi Jj,

Renting your current property so that you can enjoy this buyer's market is an excellent idea. I would, however, suggest that you get in touch with a good loan officer to take a look at how best to qualify. As you probably know, loan approval is much more difficult now with the meltdown of the mortgage industry. You need to consider your overall debt to income ration (needs to be below 43% for most lenders) and whether or not you will need to count the rent on your home as income to qualify. If you do need this income you will have to rent your home first and show that cash flow before you purchase. Some lenders will accept a signed lease agreement as proof but it is definitely best to show a deposit or two (and make copies of your tenant's rent checks).

I know that it will be quite the task to move out and find temporary living (great time to garage sale/goodwill that unused stuff!). But It will DEFINITELY be worth taking advantage of the huge opportunity in acquiring real estate right now.

Please let me know if you would like me to refer you to an excellent & reputable agent or loan officer (I used to live in the LA area).

Best of luck!!
0 votes
Jackie Petit, Agent, Winter, WI
Fri Apr 25, 2008
Renting your current home is a great idea if you can qualify for the loan or pay cash for your new home without selling your present home. Talk to your bank or lender about that. Talk to your CPA or tax professional about the potential tax benifits.
0 votes
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