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Old 04-13-2019, 01:31 PM
 
Location: Fort Worth, TX
2,502 posts, read 2,176,070 times
Reputation: 3784

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You haven't given us enough info to provide useful advice. Remember Texas is geographically bigger than many countries. The answer I'd give someone living in rural west Texas is very different than I'd give for someone living in the Montrose neighborhood in Houston.

1. Where is the home?

2. How much money do you have invested in it and how much do you owe?

3. Have you even checked to make sure you are allowed to rent out homes in your neighborhood?

4. How long is your commute and have you even priced homes closer to your work to see if you can afford one?

5. Have you run the numbers to see how much you'd need to make in rent/sale to float both homes?

6. Can you rent out the home for enough to cover: possible major repairs, property taxes, property insurance, months when the home isn't rented out, credit/background checks, possible evictions, etc?

7. You will have to pay federal income tax on any rental profit you make. Have you thought about that?

8. Do you have the time to devote to managing a rental property? If you hire a management company you make less money. Do you have the expertise needed to manage a rental property?

9. Will the VA loan allow you to turn it into a rental property?

A lot of the previous advice you've been given in this thread is bad advice because you haven't given enough info for anyone to offer good advice.
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Old 04-13-2019, 01:34 PM
 
Location: TX
7 posts, read 4,033 times
Reputation: 14
You're right about the rental costs. I have another home (in Houston) which I've been renting out for five years now. It pays my mortgage and clears a nice profit most years. But the maintenance & property mgmt costs are not fun to deal with.
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Old 04-13-2019, 01:49 PM
 
Location: Texas
663 posts, read 428,456 times
Reputation: 1901
Quote:
Originally Posted by dbs2006 View Post
. The gas $/commute issues are not ideal. What is the board's recommendation for selling or renting it out?

If it was me I would look at:
What is the worst of the options? Staying in the house with longer commute? Losing money on the purchase of the house? The pains and tribulations of renting the house?


Once I rated the options I would act on the best of the three. Personally if I like the house and location I would endure the commute for 3 or more years to allow the value of the house to increase before I attempted to sell.
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Old 04-13-2019, 02:18 PM
 
Location: Dallas
206 posts, read 168,238 times
Reputation: 294
In addition to the questions above, confirm whether you qualify to carry this mortgage and the next one. This one probably counts as debt. The Houston house probably counts in your favor because it has a track record of income.
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Old 04-13-2019, 04:34 PM
 
Location: Houston, TX
8,196 posts, read 5,328,911 times
Reputation: 12027
Where is it? Not your specific address but general area.
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Old 04-13-2019, 07:49 PM
 
Location: TX
7 posts, read 4,033 times
Reputation: 14
Sorry for not providing more details . . .

The home I live in now is in the Lubbock area (about 25 mins from downtown/where I work). It's a VA mortgage (5.5%) w/ no money down; I got it for $171,000. The Houston house I've had for 15 years (recently refinanced to a conventional loan). I'd like to think that renting it out would cover the mortgage, but I have my doubts.
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Old 04-13-2019, 08:07 PM
 
1,156 posts, read 929,373 times
Reputation: 3598
No equity and a lousy rate (well maybe not for zero down, but still). Sell if you can afford to.
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Old 04-13-2019, 08:08 PM
 
Location: TX
7 posts, read 4,033 times
Reputation: 14
That's my thinking as well . . . not worth it.
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Old 04-13-2019, 09:44 PM
 
1,380 posts, read 1,431,575 times
Reputation: 3471
5.5% for a 15 year mortgage? They took you to cleaners!
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Old 04-13-2019, 11:15 PM
 
13,194 posts, read 28,114,624 times
Reputation: 13124
Quote:
Originally Posted by dbs2006 View Post
Sorry for not providing more details . . .

The home I live in now is in the Lubbock area (about 25 mins from downtown/where I work). It's a VA mortgage (5.5%) w/ no money down; I got it for $171,000. The Houston house I've had for 15 years (recently refinanced to a conventional loan). I'd like to think that renting it out would cover the mortgage, but I have my doubts.
With no money down and only 6 months in, you’re stuck. Or you can bring about $17k cash to closing to cover your closing costs. I assume in 6 months with that kind of an interest rate you’ve not built much/any equity. A house is not really something you can just “return” six moths in. I would suck it up & stay there a few years until you’ve built enough equity up to sell. An expensive life lesson.
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