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Old 08-12-2012, 07:06 PM
 
Location: Westbury
3,283 posts, read 6,022,682 times
Reputation: 2950

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why on earth would your renter want to pay more than fair market value? i think that is the wrong assumption
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Old 08-12-2012, 08:01 PM
 
112 posts, read 279,232 times
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Quote:
Originally Posted by testmo View Post
why on earth would your renter want to pay more than fair market value? i think that is the wrong assumption
Because he knows my situation, he knows I'm renting it because I wasn't able to sell it without a loss last year. I don't see why he would even bring it up, the problem is still the same now as it was last year...

If he really likes and wants *this* townhome he can either rent it for a few more years until the market comes back up and I'll be ready to sell it, or pay more now instead of paying $35k in rent every year...

It's all purely hypothetical though and unrealistic, I admit :-)
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Old 08-13-2012, 06:29 AM
 
509 posts, read 1,539,387 times
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Quote:
Originally Posted by Florinator View Post
Because he knows my situation, he knows I'm renting it because I wasn't able to sell it without a loss last year. I don't see why he would even bring it up, the problem is still the same now as it was last year...

If he really likes and wants *this* townhome he can either rent it for a few more years until the market comes back up and I'll be ready to sell it, or pay more now instead of paying $35k in rent every year...

It's all purely hypothetical though and unrealistic, I admit :-)
My Dad was in the exact same situation although he was managing his townhome rental from within the same state. His renters wanted to purchase, so he gave them a price a bit on the high side. While they were negotiating, the townhouse next door came on the market for a lower price and his renters snapped it right up. You never know what will happen.

If you're comfortable taking a loss, name a fair price for your renter and take the loss. If not, hang on until you can sell it for more. I have to agree with one of the other posters who pointed out that it's not often that you can make a considerable profit on an investment by just waiting it out for a short period of time. Good luck with your decision!
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Old 08-14-2012, 06:21 PM
 
Location: Austin, TX
16,787 posts, read 48,878,654 times
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It is a personal decision, depending on your ability to weather risk. But if a month or two of no renter, or a major repair bill such as replacing a roof or HVAC system would cripple you financially, then in my opinion that is risk you should not be carrying.

If that were true for me I'd shed the property, so I could sleep at night. Life is too short to live it in dread of those kinds of events.
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Old 08-16-2012, 05:32 PM
 
Location: Corvallis, Oregon
653 posts, read 1,788,977 times
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I have a similar issue with my house in Oregon.
But it is paid for, so there is not the issue of paying a mortgage. However by not selling it to pay for the Austin house, I am paying a mortgage on the Austin house.

Since I moved to Austin, the Oregon house has dropped another $20000 in value. So at this moment, I would be better off if I had sold it. But that does not mean I will be better off in 5 years if I sell it now.

I just feel like property is a reasonable thing to have a chunk of my net worth in, since it will at least retain the value of a place to live.
With inflation possibly being higher than interest rates, hanging onto property is not a bad idea.
Also, increased inflation is reasonable to expect.
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Old 08-16-2012, 05:43 PM
 
Location: SW Austin & Wimberley
6,330 posts, read 17,996,820 times
Reputation: 5531
I'd visit with your accountant or a financial planner and get some advice that takes into consideration your entire financial picture and long term goals. You're trying to make a decision that could have long term implications based on your current, short term fears. Not a good way to decide things.
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Old 08-17-2012, 10:48 AM
 
554 posts, read 741,735 times
Reputation: 1042
A BIG "THANK YOU" to Everyone who's posted on this thread!
My spouse & I are contemplating a very-similar issue, since we live in Santa Clara, and will (eventually) relocate-for-retirement back to Texas.
There has been some really thought-provoking opinion put forth here, and I just wanted y'all to know that I 'ppreciate getting to read it --- not that our decision about "sell vs. rent" has been made any easier --- 8^/
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