Keep waiting to sell? (Miami, Tampa: real estate market, 2010, apartment)

[FIU2000]

My husband and I purchase a home in 2005 (yes still kicking ourselves) for $250k that I believe is now worth somewhere in the neighborhood of $150k. It's a new construction single family home in Lehigh which is a suburb of Fort Myers. We currently owe about $196k on it. We're both 29 with no kids. My husband is in school right now working on his bachelor's in engineering and wants to eventually transfer to USF. He has about 8 more classes to go before he can get admitted to the engineering program so we're looking at about one more year. Our thought process has been to go ahead and stick it out this one more year so he can finish up those classes at C.C. and also to give us time to see what happens with the market. I know no one has a crystal ball but if you were in my situation, any best guesses? Would you keep waiting or would you cut your losses?

We've driven up to visit the area about 3 times. This past weekend we went through South Tampa, New Tampa, Tampa Palms, and Carrollwood (basically took Dale Mabry all the way up and over to BBdowns. Unless a miracle happened we would probably have to rent until he finishes school because most of our savings got tied up in the house. We have 2 small dogs and a cat and would prefer to avoid the apartment trap in lieu of a house, townhouse or condo with a nice landlord. Saw a really cool little house off Kensington Ave in South Tampa for $1100. That would probably be the absolute top of my budget because I would be the only one working full-time. Guess I'm afraid maybe rents will jump up in the next year or is it safe to say that probably won't happen? I wouldn't do anything without a job secured of course but it sounds like most of the jobs are downtown. I work in Human Resources with mid-level experience and the other reason I thought of waiting is because, much like this area, there are less jobs due to the market. Does anyone else agree?

[jessiesma]

you've got a lot of issues here, FIU. Can you rent out the house in Ft. M? Now that you've lived there 3 years it's no longer "new construction" it's a "preowned." Your having 3 pets is an issue. We have 2 cats and have found that 2 is the maximum usually in rentals here. Some dog breeds are restricted also. I know this a a really tough option but Tampa isn't that far, could your husband get a tiny place, maybe even a share for a couple of nights a week and commute? You'd posted elsewhere about your job. This would keep you in the house, in a secure job and the two of you really wouldn't be that far away. Just think if he were in Iraq how much owrse it could be.

Originally Posted by FIU2000

My husband and I purchase a home in 2005 (yes still kicking ourselves) for $250k that I believe is now worth somewhere in the neighborhood of $150k. It's a new construction single family home in Lehigh which is a suburb of Fort Myers. We currently owe about $196k on it. We're both 29 with no kids. My husband is in school right now working on his bachelor's in engineering and wants to eventually transfer to USF. He has about 8 more classes to go before he can get admitted to the engineering program so we're looking at about one more year. Our thought process has been to go ahead and stick it out this one more year so he can finish up those classes at C.C. and also to give us time to see what happens with the market. I know no one has a crystal ball but if you were in my situation, any best guesses? Would you keep waiting or would you cut your losses?

We've driven up to visit the area about 3 times. This past weekend we went through South Tampa, New Tampa, Tampa Palms, and Carrollwood (basically took Dale Mabry all the way up and over to BBdowns. Unless a miracle happened we would probably have to rent until he finishes school because most of our savings got tied up in the house. We have 2 small dogs and a cat and would prefer to avoid the apartment trap in lieu of a house, townhouse or condo with a nice landlord. Saw a really cool little house off Kensington Ave in South Tampa for $1100. That would probably be the absolute top of my budget because I would be the only one working full-time. Guess I'm afraid maybe rents will jump up in the next year or is it safe to say that probably won't happen? I wouldn't do anything without a job secured of course but it sounds like most of the jobs are downtown. I work in Human Resources with mid-level experience and the other reason I thought of waiting is because, much like this area, there are less jobs due to the market. Does anyone else agree?

[mquintana]

Yes, you might have to wait. The market is a buyers market but people aren't biting. People are selling their homes for way under value. I hear about this everyday from people (I work as an assistant manager for an apartment community in Brandon). If you rent the house out, becareful. Make sure you take 1st, last, and security equivelent to the rent you are charging. I would look at other home rentals in your area and compare the rental rates to come up with your price. Oh, and if there is damage in your home, atleast you can cover it incase they don't pay you back for what you chrged them...or it could be a small balance after the deposit money is used. Make sure you open a seperate interest bearing savings account. You can do what we do and give them a credit every year for the interest that built up. Renting has it's pros and cons. Some people take really good care of the place and others rip it apart. You might want to go through a real estate agency and have them rent it out for you so you can have them do credit, rental, and criminal checks. If you are going to do it, do it right, right? If you need help, let me know, I can direct you in the right direction.

[mquintana]

Oh, and one more thing, most apartment communites only take 2 pets max. You might have to look into a privately owned home or townhome.

[FIU2000]

LOL, yes we do have a lot of "issues" Jessiesma, you're right on that. I've definitely been thinking that a private landlord will be the way to go when the time comes due to our pet situation but also because I've lived in complexes before and it seems like no matter how great they seem on the outside there always wind up being problems. A landlord who gets to know us will, hopefully, see that we are responsible (we have owned two homes which I think is pretty good for our age) and are not the type of people who will trash a place. We take a lot of care since we do have pets and the best news is that everybody is potty trained !

As for renting our place, unfortunately rents are really low where we are and it just doesn't seem worth it to risk the damage that could be done. We have pretty high standards when it comes to cleanliness and taking care of things and things that other people might dismiss we tend to notice right away. When we were searching for our house we saw a few that had been previously rented and it was a little scary.

My back-up plan is to stay in the house and send hubby to FIU in miami where he can live with my aunt. It breaks my heart because he wants to go to USF so badly but if it's the only way it's better than going to FGCU which is here in Fort Myers but whose Engineering program is not accredited

[Junker1079]

Originally Posted by FIU2000

My husband and I purchase a home in 2005 (yes still kicking ourselves) for $250k that I believe is now worth somewhere in the neighborhood of $150k. It's a new construction single family home in Lehigh which is a suburb of Fort Myers. We currently owe about $196k on it. We're both 29 with no kids. My husband is in school right now working on his bachelor's in engineering and wants to eventually transfer to USF. He has about 8 more classes to go before he can get admitted to the engineering program so we're looking at about one more year. Our thought process has been to go ahead and stick it out this one more year so he can finish up those classes at C.C. and also to give us time to see what happens with the market. I know no one has a crystal ball but if you were in my situation, any best guesses? Would you keep waiting or would you cut your losses?

We've driven up to visit the area about 3 times. This past weekend we went through South Tampa, New Tampa, Tampa Palms, and Carrollwood (basically took Dale Mabry all the way up and over to BBdowns. Unless a miracle happened we would probably have to rent until he finishes school because most of our savings got tied up in the house. We have 2 small dogs and a cat and would prefer to avoid the apartment trap in lieu of a house, townhouse or condo with a nice landlord. Saw a really cool little house off Kensington Ave in South Tampa for $1100. That would probably be the absolute top of my budget because I would be the only one working full-time. Guess I'm afraid maybe rents will jump up in the next year or is it safe to say that probably won't happen? I wouldn't do anything without a job secured of course but it sounds like most of the jobs are downtown. I work in Human Resources with mid-level experience and the other reason I thought of waiting is because, much like this area, there are less jobs due to the market. Does anyone else agree?

I can't tell you what to do but I wouldn't hold out for the market to get better........at least not unless you are willing to hold out for a few more years............there is nothing anywhere that suggests things will get better before the end of 2009 and possibly 2010.

[jessiesma]

is that wherever he goes, it be accredited. Miami might be a better option. I don't know about the private landlord. Good ones are pretty rare. Most use a realtor or own a scattering of units around town so it's strictly business. The problem with the "babies" isn't potty training, it's FLEAS Accidents can be gotten rid of but a flea infestation is murder to eliminate. You guys sound great and really it's not about your ages. At 29 I was married with a 4 yr. old and had lost both my parents. It's not really so young. But a stranger doesn't know YOU and will go by their experience. I worked in a very upscale store and you wouldn't believe how the "mature" women just threw the clothes they didn't want on the floor. Not only was it disrespectful to those of us who had to clean up the mess, it damaged the clothes so we couldn't sell them. Unfortunately that seems to be the norm. Your sense of responsibility regardless of age is not typical of our "disposable" society. Unfortunately right now, most people who rent seem to view their living situations as being disposable and not their problem. They just use what they need and move on. The advice of another poster about how you should handle any rental of your own home is exactly spot on. You also must not be "nice" if there are problems. Use all legal means once you've determined the problem tenant is being disrespectful, not merely hitting a bad patch in their own lives. It happens to the best of us. Give someone a reasonable chance to fix a problem but don't enable them.
We are in a complex and hit a bad patch. Our Prop. Manager is working with us so you never know. she is a mature woman who used some common sense not "dilbert speak."
I wish you well, really. You sound like you're doing very well for 29 . Don't start beating yourselves up about buying the house when you did. I really think you need to hold it. Based on the figures you posted I'm not sure you can sell it and clear your mortgage. I'm sure you have some sentimental feelings towards it but STOP. It is now just an asset in your portfolio (the one you're starting). Separate it from your feelings. Eventually it will gain value and you'll pay donw the loan, building equity.

Originally Posted by FIU2000

LOL, yes we do have a lot of "issues" Jessiesma, you're right on that. I've definitely been thinking that a private landlord will be the way to go when the time comes due to our pet situation but also because I've lived in complexes before and it seems like no matter how great they seem on the outside there always wind up being problems. A landlord who gets to know us will, hopefully, see that we are responsible (we have owned two homes which I think is pretty good for our age) and are not the type of people who will trash a place. We take a lot of care since we do have pets and the best news is that everybody is potty trained !

As for renting our place, unfortunately rents are really low where we are and it just doesn't seem worth it to risk the damage that could be done. We have pretty high standards when it comes to cleanliness and taking care of things and things that other people might dismiss we tend to notice right away. When we were searching for our house we saw a few that had been previously rented and it was a little scary.

My back-up plan is to stay in the house and send hubby to FIU in miami where he can live with my aunt. It breaks my heart because he wants to go to USF so badly but if it's the only way it's better than going to FGCU which is here in Fort Myers but whose Engineering program is not accredited

[GENO-777]

Originally Posted by FIU2000

My husband and I purchase a home in 2005 (yes still kicking ourselves) for $250k that I believe is now worth somewhere in the neighborhood of $150k. It's a new construction single family home in Lehigh which is a suburb of Fort Myers. We currently owe about $196k on it. We're both 29 with no kids. My husband is in school right now working on his bachelor's in engineering and wants to eventually transfer to USF. He has about 8 more classes to go before he can get admitted to the engineering program so we're looking at about one more year. Our thought process has been to go ahead and stick it out this one more year so he can finish up those classes at C.C. and also to give us time to see what happens with the market. I know no one has a crystal ball but if you were in my situation, any best guesses? Would you keep waiting or would you cut your losses?

We've driven up to visit the area about 3 times. This past weekend we went through South Tampa, New Tampa, Tampa Palms, and Carrollwood (basically took Dale Mabry all the way up and over to BBdowns. Unless a miracle happened we would probably have to rent until he finishes school because most of our savings got tied up in the house. We have 2 small dogs and a cat and would prefer to avoid the apartment trap in lieu of a house, townhouse or condo with a nice landlord. Saw a really cool little house off Kensington Ave in South Tampa for $1100. That would probably be the absolute top of my budget because I would be the only one working full-time. Guess I'm afraid maybe rents will jump up in the next year or is it safe to say that probably won't happen? I wouldn't do anything without a job secured of course but it sounds like most of the jobs are downtown. I work in Human Resources with mid-level experience and the other reason I thought of waiting is because, much like this area, there are less jobs due to the market. Does anyone else agree?

I can't believe that you people just take whats happing, Don't you realize that you got screwed, Your bank had to be in on it, otherwise why would they give you a mortgage on a house thats worth 1/2 of what you paid? this happened here in Pa. And the government investigated and lots of people went to jail or got fined big time, Complain to some one some one in government has to care. call your congress man or the attorney generals office

[Junker1079]

Read the news...........it's happening now!

When this home was purchased NO one saw this as the eventual end, and the home did appraise (using past sales) for it to close.

Real Estate is a market.........it has it's up's and downs.............we, in Florida ARE ALL IN THE SAME POSITION

I'd love to hear your answers for our state and the state of our real estate market. Unfortunately 2005 was the absolute HEIGHT as it turned out, and I'm sure the value has decreased since then..........don't know if the current value is accurate, but even though I am not in that area, I know enough to know the market is completely saturated with SELLERS resulting in the price drop.

I wish there were an answer

[Junker1079]

BTW..........I don't KNOW OF ANYONE who purchased in Florida in 2005 who ISN'T in the same position as this family.

post your answer PLEASE for all homeowners in Florida (myself included), who, at least on paper, ARE LOSING EQUITY.