I am being moved by my company and my home is worth $100,000 less than when I bought it. I would like to rent it out, but my mortgage is $2200 and I

Asked by Canoli, 19406 Thu Apr 1, 2010

could probably only get about $1500 rent. I have heard that some companies will make up the difference in rents for a period of time. Does anyone have information about this kind of program?

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6
Maria, Renter, Pennsylvania
Sun Nov 21, 2010
What a re the details of your property. we are looking to rent in Mechaniscburg.
Maria
0 votes
Cheryl R. Su…, , Schwenksville, PA
Thu Apr 1, 2010
Did you work with a realtor to discuss further?
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Apr 1, 2010
Canoli
1. Did you discuss this situation with your employer? Do they offer relocation assistance?
2. Have you discussed this with your CPA? Tax-wise having a rental property will have a significant affect on your situation, both while it is a rental and when you decide to sell. This happened to me, we kept it for 18 years and made a lot of money when we sold it...but it was not an easy learning curve.
3. Are you planning to buy when you move? If you have this property as a rental will for debt to income ratio and debt to asset ratio allow you to buy? You could end up renting...which we did.

Have your CPA prepare some scenarios that you can present to your employer. Perhaps when they see the numbers they might find a way to help you out, maybe bump up your salary?
0 votes
Canoli, , 19406
Thu Apr 1, 2010
I have tried renting and lease option before at $2200 and did not even get a call.
0 votes
Don Tepper, Agent, Burke, VA
Thu Apr 1, 2010
I haven't heard about such programs. I'm sure, though, that the companies want something in return, such as a portion of the proceeds upon sale of the property. Unfortunately, with your home $100,000 upside down, there won't be any profits from a resale for quite a while. In the meantime, the investor/other party would be paying out about $8,500 a year.

You might be able to narrow that gap a bit by offering your home as a lease-option. Also, with a lease-option you can shift a lot of the burden of maintenance onto the tenant-buyer.

Hope that helps.
0 votes
Cheryl R. Su…, , Schwenksville, PA
Thu Apr 1, 2010
Have you tried to rent it for $2200? You may want to consider a lease to own or a lease purchase. Is it a single home or a townhome?

Cheryl Supplee
Coldwell Banker Preferred
716 Dekalb Pike
Blue Bell, Pa 19422
(610) 812-6575
csupplee@cbpref.com
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