rapp
New Member
Cash: $ 0.65
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Joined: 13 Sep 2005
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| Sell it or Rent it out? |
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I have been an apartment manager for a long time and always got FREE apartment. After being tired of living in an apartment, I've bought a house. But now, I'm missing the extra money I used to have from not paying for the apartment. It's just me and my wife and we're wondering if we should go back to FREE apartment and save that money. But we don't know if we should sell before the market crash, or rent it out and keep the house. What would you do?
Thanks.
Ron
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Tue Sep 13, 2005 1:56 pm |
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sambo
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Joined: 09 Sep 2005
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well if you keep the house you wont have to pay rent and you will have extra cash coming in...i dont think that the market will crash so bad that you wouldnt be able to wait it out...if you stick with it long term i think it would be a great investment...free rent plus free income
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Tue Sep 13, 2005 2:46 pm |
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joseanes
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Joined: 30 Aug 2005
Location: Marlborough, MA
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Rent the apartment out.
Why?
It is healthy to feel a little constrainted (finantially). It makes you be creative.
Try to get a rent out of the appartment to feel more relaxed.
Try to get a better job (necessity or finantial stress makes you advance harder) 
Keep yourself motivated.
Keep investing.
I do not think the market will crash like the stock market. A 6% downturn maybe. But that is easily recovered in a couple of years.
Wanna see how housing markets have done over time?
http://aneshome.com/pivot/entry.php?id=115
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Tue Sep 13, 2005 3:06 pm |
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rapp
New Member
Cash: $ 0.65
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Joined: 13 Sep 2005
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I can't rent the apartment out but I was talking about renting the house out and live in the apartment for free.
When you work for a property company, most of the management staff get free apartment. So I was thinking about renting the house out and go back to free apartment to save the money that I would pay for the mortgage and let the renter pay for most of my mortgage.
I really don't want to sell the house.
Thanks.
Ron
quote:
Originally posted by joseanes
Rent the apartment out.
Why?
It is healthy to feel a little constrainted (finantially). It makes you be creative.
Try to get a rent out of the appartment to feel more relaxed.
Try to get a better job (necessity or finantial stress makes you advance harder)
Keep yourself motivated.
Keep investing.
I do not think the market will crash like the stock market. A 6% downturn maybe. But that is easily recovered in a couple of years.
Wanna see how housing markets have done over time?
http://aneshome.com/pivot/entry.php?id=115
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Tue Sep 13, 2005 3:23 pm |
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BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
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Location: Illinois
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It seems like if they're willing to give you a free apartment, then you should be able to sublet it - or take the equivalent in cash income. Shouldn't make a difference to the property company.
But then again, maybe this is one of the reasons that I stay out of rental property as an investment... 
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
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Tue Sep 13, 2005 3:41 pm |
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MattL
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Joined: 25 Jun 2005
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They probably won't allow subletting for liability purposes.
I think it depends on your lifestyle. If you and your wife BOTH don't mind living in an apartment you could rent the house. Don't forget to take wear and tear into consideration. Renters can be hard on a house and even if you keep the security deposit you will most likely need to put some money into it before you move back in someday.
Debt Elimination
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Tue Sep 13, 2005 8:05 pm |
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rapp
New Member
Cash: $ 0.65
Posts: 3
Joined: 13 Sep 2005
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No, they won't let me sublet the apartment.
I know, I was thinking about the nightmare of a bad renter.
Though I am very handy and I can just about fix anything and I can get the materials at a cost, it will still cost money to fix the house. But then again, I'm thinking of $1500 monthly savings too. I may get lucked out and get a nice couple to rent out and take care of my house (i can dream). I may even let them rent it for under the market rent rate if they promise me not to trash my house.
I don't know... I'm just thinking of $1500x12=$18000(yrly) and someone else paying my mortgage. How badly can they trash my house? 
Wadaya think?
Ron
quote:
Originally posted by MattL
They probably won't allow subletting for liability purposes.
I think it depends on your lifestyle. If you and your wife BOTH don't mind living in an apartment you could rent the house. Don't forget to take wear and tear into consideration. Renters can be hard on a house and even if you keep the security deposit you will most likely need to put some money into it before you move back in someday.
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Tue Sep 13, 2005 10:32 pm |
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ushomeloans
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Joined: 08 Sep 2005
Location: Sacramento
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You got to post more information on the actual home. That is the key to decide. Is it a good investment property, if not why not sell then buy another to rent out with the equity. Will rent cover the payments with taxes and insurance? Do you have a 30yr fixed? How much is your equity? What is the local rent in that market. Give me a call-email 9162244761
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Tue Sep 13, 2005 10:34 pm |
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Wetherstorms
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Joined: 12 Sep 2005
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I agree with the statement that we need to know more about the house. My opinion would be probably keep the house due to the fact that most properties will not break even from a buy until after an average of 2 years. With selling costs, you may end up losing money on the deal even though it might at first appear that you will break even or come out ahead! The other side of the coin though is that renting a property can be difficult work. Questions that will help make the decision easier is:
How much did you buy the house for?
What is the market for a similar house in your neighborhood?
What is the mortage/PITI on the property?
Definitely a tough decision!
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Wed Sep 14, 2005 11:37 pm |
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