Rent out or sell home (mortgage broker, loan, broker)

[laelfin]

My husband and are getting ready to purchase a new home and are trying to decide whether to rent out our current townhouse or try to sell it. Does anyone have any recommendations about this?

I also am looking for recommendations about a mortgage broker to use for the new purchase.

Thanks!

[Unkllars]

If you can afford to rent for positive cash flow and your loan on your townhouse permits it, then by all means rent!! That is savvy investing and that's taking advantage of the rent spikes that are occurring because of such a low demand to buy. You are in a pretty ideal situation. Congratulations!!

[kturbe]

As Unkllars notes below if you can keep your current home and rent it out for positve cash flow, maybe even with a little support on your end then I would recommend going for it. I do recommend that you try to put together a 5 year plan with both homes so that you can see a good rate of return, but as this was your primary residences you also need to familarize yourself with 1031 exchange benefits.

If you are buying in a new home community they will probably give you some closing cost, etc. if you use their financing. I would also recommend you speak with a couple of different lenders to ensure you are getting the best deal for you.

If you decide to keep as an investment you may want to consider one of the many Acceleration programs as it is the fastest way to minimize the interest you pay on this property which would be great for your return.

Congrats, if you have any questions please do not hesitate to contact me.

[bob-jenkins]

Where is the townhouse located? I ask this because some markets are destined for a deeper downturn than others.

[Unkllars]

bob-jenkins is right. Putting his and kturbe's comments together, create a 5-10 year or more plan depending on the stability of the market in your area

[RAMFEB31]

You certainly are in a catch-22 situation. Housing prices, especially condos have plunge but rental prices have gone up or held steady. W/the sub prime thing, many lenders are reluctant to lend except to people with top notch records. Owning a rental unit is a liability not an asset unless it is free and clear. But, among what others on this post have said, I think the other question is whether you have any experience being a landlord. From a person who have ran that gamut for many years, being on the other side of the fence is not always a pleasant experience. The law seem heavily in favor of the renter. Try removing a non paying tenant who refuse to move is just one aspect. This is usually a costly experience. Finding a good tenant is another. I can go on and on. How are you in fixing things? The usual rate for a contractor is $100 /hr. Ask a Management Co to buffer U from doing detail like finding the renter and do the repairs? If U are a one home show, expect to be in the negative at all times. And so on. Personally, I don't believe a person with compassion make an ideal landlord. Awfully negative am I not? Sorry about that. It is reality.