Is renting out the house a good idea?

[TurtleCreek80]

Originally Posted by Zozoxxx

of the rental income?

Yes.

[UnfairPark]

Originally Posted by serger

As of late, Frisco and Colony had one of the highest appreciation rates (percentage wise) in collin county. They just started lower. I know people who sold in Frisco at 50%-70% or more gain in just several years. This cannot happen in west plano, it is too expensive.

Those were newer homes bought at low prices. Once homes bought at current inflated prices will get old then we'll see how much "appreciation" Frisco and The Colony get compared to more desireable locations. We've been through that in Mesquite and Irving.

[iberanon]

Originally Posted by TurtleCreek80

Percentage gains don't matter.

Oh boy, where and when did I heard that before?

[serger]

Originally Posted by TurtleCreek80

Percentage gains don't matter; dollar gains do. A $300k house in Frisco that gained 50% in value is now with $450k, a $150k gain. A $600k house in West Plano would only have to appreciate 25% to gain $150k in value. A $1M house in HP/UP would only have to appreciate 15% during the same time go gain $150k in value.

Our Preston Hollow/North Dallas house hasn't appreciated nearly as fast, percentage-wise, as Frisco or other CoCo suburbs, but our dollar gains are larger because we're growing from a larger base.

And two 300k houses is Frisco, would have appreciated by 2x150=300k and so on. Percentages do matter.

And , they appreciated so much because they had more room upwards. I'm not saying this will continue. A "compression" in the home prices is one of the first signs of unhealthy house market.

[TurtleCreek80]

Originally Posted by iberanon

Oh boy, where and when did I heard that before?

All I know is that I don't pay my bills with percentages, nor can I retire on a percentage. Dollars ultimately matter.

[ChristieP]

Read this thread:
//www.city-data.com/forum/texas...nant-your.html

Do you still think renting it out is a good idea?

[DanW127]

Based on your original post it doesn't sound like you can afford to cover two mortgages in the event you have a hard time finding a tenant or end up with one who likes to pay rent late. Landlord-Tenant laws are already kind of a nightmare in California: Overview of Landlord-Tenant Laws in California | Nolo.com. Add the fact that you'll be out of state and you have a recipe for disaster if you aren't on top of things.

That being said, if you handle things properly you could also turn your current home into a secondary means of income without having to give up the property.

After you've familiarized yourself with the rental laws in your state the most important thing to do is find a good tenant. The three big tips I've got for you are to:
1. Meet with them in person, at least twice. Take notice of how they treat their car (this is good indicator of how they might treat your property!
2. Require at least two references from previous landlords or employers. Get phone numbers and CALL these people. They will be your best chance at getting an understanding of how reliable this person is.
3. Charge an application fee and run a full background and credit check ( I use Tenant Screening Services | Renter Background Reports - MyRental.com).

You'll also need to put together a tight lease/rental agreement: Leases and Rental Agreements - Nolo.com and have a management company/reliable handyman as well as lawyer on speed dial in case anything goes wrong.

If all of this sounds like something you're willing and able to do, then by all means consider it, but if I were in your position I would just sell the house unless I was dead-set on returning in the future.