Should I rent my place out or sell? (sale, real estate)

[Finper]

I'm looking to leave the state I've been here my whole life and need a change. Currently I own a condo if I sold it I'd probably get around 130k in equity. My mortgage and HOA is 1300.00. I could rent it out for 1600.00 or 1700.00. Does anyone have any advise on what I should do?

[Cardiff Kook]

Originally Posted by Finper

I'm looking to leave the state I've been here my whole life and need a change. Currently I own a condo if I sold it I'd probably get around 130k in equity. My mortgage and HOA is 1300.00. I could rent it out for 1600.00 or 1700.00. Does anyone have any advise on what I should do?

Keep it and have someone else build your equity for you....Or just in case you don't like where you move and want to move back you won't be hard pressed to find another place

[Electrician4you]

Originally Posted by Cardiff Kook

Keep it and have someone else build your equity for you....Or just in case you don't like where you move and want to move back you won't be hard pressed to find another place

This^^^
Get a PMC if you can't self manage long distance. As time goes on the rent will go up.

[JonBSalgado]

Sell it and buy in elsewhere. After paying taxes, you won't make any money, and simply paying for it self is not a good game plan when you have equity you can put to work to actually pull a profit, and start making some money.

For example, here in Charlotte, with $130k, you can get 2 smaller single family properties, and pull about $1,200-$1,300 a month. Don't forget, the home is paid off and no HOA, so this is pure profit. That's if you do not need the money to buy your next home...which is doesn't sound like.

I am a realtor in the area, and work with investors; so I have good working knowledge of the current market here. Here is a real world example for you:

There is a condo on the market that one of my investor clients just made an offer on. Asking price is currently $59k. The condo rents for $800/month, HOA is $171/month, and taxes are approx $56 a month. After all is said and done, you are pulling in $573/month, and the unit will likely go for low $50k. If you do the math, it makes sense to sell your unit and put your money to work.

[russlancea]

How will the condo association feel once they find out you're renting your unit? Don't they discourage or limit that?

[Finper]

No more then half of the units here are rented. Good question though

[Electrician4you]

Another thing to think about is if you ever decide to move back. I know people who moved away then wanted to come back but prices got out of reach and now they are renting. And can't buy. At least nowhere where they want to live. You may not be making much money this way, but if you want back at least you got a place.

[Bobdreamz]

Originally Posted by Finper

I'm looking to leave the state I've been here my whole life and need a change. Currently I own a condo if I sold it I'd probably get around 130k in equity. My mortgage and HOA is 1300.00. I could rent it out for 1600.00 or 1700.00. Does anyone have any advise on what I should do?

Need more info from you please.

How old are you? Is this a Retirement move?
Do you feel comfortable being a "absentee" landlord?
This depends on how actively involved you want to be as a Landlord or if you want to let somebody else handle your business.

* You may need to hire a property manager to take care of rental payments and/or to the upkeep of your condo which entails the breakdown of appliances, etc. if you can't perform these tasks yourself or if you have a Home Owners Warranty that will cover those expenses.

Do you need that $130k in Equity to buy somewhere else?
If you keep the condo and rent it out it will be a positive cash flow based on your numbers.

* Will the sale of your condo be a Capital Gain?
You will have to pay Income taxes on that sale if it is a Capital Gain unless you re-invest those gains into another personal residence within a few years.

Also if you rent it out at $1600/$17000 a month and are making $300-400 a month above your cost you will be taxed on the difference plus what ever the state Income tax is in CA.

Lot's to think about and Good luck!

[nmnita]

Originally Posted by Finper

I'm looking to leave the state I've been here my whole life and need a change. Currently I own a condo if I sold it I'd probably get around 130k in equity. My mortgage and HOA is 1300.00. I could rent it out for 1600.00 or 1700.00. Does anyone have any advise on what I should do?

3 times we left the in the hands of good management companies. One was the real From past experience, unless you are certain you will be returning and would want to move back in, for heaven's sake sell it!!! It is one thing to have rental property, purchased with that in mind, quite another to rent out your home. We did this three times: all turned out to be mistakes and 2 of the real estate company I had worked for many years.

Take your equity and buy wherever you will be working. It is rare, renting your own home out works well.

[Finper]

I'll be in my 50's when I move. It's a semi retirement thing I'll still be working just not as hard. I'm leaning towards selling because I don't want a nightmare renter.

Do you think I should buy where I move? I heard you shouldn't buy if your over 50. But don't want to get killed in taxes