Should we just sell house or rent it out?

Asked by Sirenspan, Fair Oaks, CA Fri Sep 21, 2012

Trying to decide if buying a newer house in better location and renting out our other house is worth it for positive cash flow. We have a house with payment under $1000.00 and thinking of buying a house in another area because of school choice, and renting out the our $1000.00. The renter market price in our area is $1600 to $2000. We do have equity in current house if need to sale. Me & my wife have great jobs and can retire in five years. We are under fifty YOA and have two great children with one to start college in six years and the other in eight years. We are losing our mortgage tax write off more and more each year. We will need a better write off or pay much more in tax's. I would like to rent our house for positive cash flow and this will keep an asset for years to come. Is this worth the effort? Also, we will be ready to sale or rent out house in six to eight months while saving more money for more liquid cash for savings. We want to move out of current house for schools.

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Maria Cipollone’s answer
Maria Cipoll…, Agent, Coral Springs, FL
Wed Nov 14, 2012
With qualitative predictions of rising home prices and rising rents in the next months according to Fannie Mae, you need a real estate agent that explore and explain your options, before you make a decision.

All the best,

Maria Cipollone

Century 21 tenace
1 vote
Charles Jones…, Agent, El Dorado Hills, CA
Wed Apr 29, 2015
Some individuals are far more open of becoming landlord than others. It is my goal, so my views are already slanted. perhaps a good thing perhaps not. the key ingredient is the mystery renter.. in all reality that is defining factor or so I suspect. Do know there are property management agencies that handle everything.. again my goal!. Doing the math, you have to figure that the homes seem to be going up at a nice steady clip. And surely interest rates are expected to as well, If you are locked into a great rate below 4%.. then that is a huge factor.. The great news that you may be overlooking is that you are one of a very few who have this option,, the ability to purchase a new home and possibly keep this one.. so well done!. if only we all had this option. and never forget you can take equity out of your first home without selling it.. again locking in at this awesome rate. I think many undervalue this incredible interest rate,, the 50 year average if I recall is close to 8.5.. something like that,. My fist home was at 16%,,so I understand the value more than most. Go with your instinct,, don't let someone tell you what to do , you seem to have everything under control. I'm willing to bet , I already know. or you wouldn't of even brought it up.. if you need any assistance in finding your new home. or info on getting lowfunding .I would be more than honored.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Sun Sep 23, 2012
Best advice I can give you , connect with an experienced local Realtor, who can provide you with both
the real possibility of selling your home for how much in your market and based on the type and condition of your current home and what you still owe to the bank.

Then see what you could potentially and realistically rent it for, how busy is the rental market in your area, and can you hold on to the property if for 3 4 or 5 months after one renter leaves there is no
new one!!!

Careful very careful, work with an area Realtor, who knows both well the selling and the renting market.

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
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the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- or Check out my website at htttp://
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
0 votes
Keisha Mathe…, Agent, Elk Grove, CA
Fri Sep 21, 2012

The decision to rent your home for cash flow or sell it is not a tricky one. One will (may) bring you a somewhat steady stream of income, while the other one, selling the home, means cashing out. Based upon the current rent rates in your area, you can assess what your "income" might be. Based upon the current value of the property (I recommend a CMA from a real estate professional), and what you owe on the property, you can assess what profit you may gain from selling the home.

So the question really becomes, do you "cash out" now or keep it and get a slower "cash out" in the form of rent, and hope the equity will continue to increase. Remember, no one can guarantee you increased equity. So I don't think anyone on this thread would be able to answer that for you.

Now the purchase. If you are able to purchase in this current market, you would definitely get the best price at the best rates, no doubt. But you mentioned that you were going to be ready in six to eight months so that you can save toward this new purchase. This means more of your own money going out. What are you trying to achieve? Savings? Future equity?

I recommend you sit with a financial planner and discuss your personal financial goals which will include more than just the real estate, but will also help you see how you should hold your real etsate assets to help you meet your future financial goals.
0 votes
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