Offered job out of town- can I rent and pay mortgage while house is on market? (apartment complex, lease)
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I was offered a great job in beautiful Princeton NJ. It will pay about $65K which would make me eligible to rent an apartment for about $1500 a month.
Trouble is I own a house far away and have to pay mortgage on that house until it sells.
Here is the problem which many people who want to relocate for a job are facing. How do you get approved for the apartment in the new town you want to move to for a new job if you are still paying a mortgage while you desperately try to sell your existing home? Lets say my home takes 6 months to sell, then I am paying rent in Princeton and a mortgage in my current hometown for six months. My parents may lend me the money to pay the rent with the idea that once the house sells I can pay them back but would the apartment complex in Princeton see the $2100 mortgage on my credit report and turn me down?
Looking at it from a different perspective, can you afford to pay $1500 rent AND continue to pay your mortgage on your new salary without either looking for assistance from your family or defaulting on your new rental? If the answer is no, then you need to set your sights lower and determine exactly what you can afford.
The reason I bring this up is because although landlords and property managers who control/oversee multiple properties are notoriously demanding where credit and background checks are concerned, private landlords with just one or two rentals tend to be, by and large, a lot more lax in their requirements.
I have the feeling that you already know you can't both afford to pay both your existing mortgage and $1500 in rent and so you probably won't pass the muster of any credit check. Figure out what you CAN afford to pay in rent and go from there.
Agreed. you sound like you already know you can't really afford both without help. Set your sights lower and do a short term lease so that you can afford both until your house sells. Once the house sells, you can move into what you want and can afford.
Trouble is I own a house far away and have to pay mortgage on that house until it sells.
Anyone else deal with this issue?
Are you up to date with the payments on this mortgage?
Are you upside down on the loan? If it sold *tomorrow* at current market price...
after all the transaction costs and fees and "curb appeal" work...
would you net much of anything?
It's not relevant whether anyone else has or hasn't moved to a new area before selling their current home. The bottom line is whether or not you can afford to pay both rent on a new place and your present mortgage. If the new landlord performs a credit check and your finances indicate that you can indeed swing it then you're fine, Can't you look around outside the main hub of Princeton and find something which better suits your current financial situation and from which you can commute? There are relatively inexpensive rail and bus passes to be had and although this sort of situation may not be something you're used to, thousands of people do it every day and you can get used to it until your house sells.
Once years ago during an economic downturn in the mid 70s I was saddled with not only a house but a condo as well when the opportunity to buy a business came up which was too good to pass up. There was a house on the property and, although it was a BIG financial squeeze and pretty scary for a while, we finally managed to sell the house and the condo after about six months and things got onto a more even keel.
If the new job is really worth it you can hopefully find a way to make it work. Good luck.
THE solution? Come back to us in 5 years and YOU tell us.
A solution? Rent it out and postpone the sale.
Cross your fingers and roll the dice playing accidental landlord (never advised here)
Or find your counterpart who needs a short term rental in your old town (even harder to manage)
Charge them just enough to cover your rental expenses in the new town. More if you can.
B Solution? Wholesale the property.
Sacrifice some of that $150,000 equity you claim to have.
Sell quickly to someone able to take the time to wait for a sale.
I would make about $150K if I sold the house and the mortgage is up to date and my credit is good.
A short term lease in Princeton would cost me even more.
I have to live somewhere near Princeton if I accept the great job opening.
Things are expensive there, so I really can't find anything cheaper.
If I don't accept the job within a week, they will give it to someone else.
So what is the solution?
Have you ever moved to accept a job in another town before selling your house?
Maybe you should try to hold on to your house, until you know the job is a great fit. Rent the house you own out....Find the best renters you can...give them incentives for renting while it is on the market. Who knows maybe you will have long term renters and then consider your home an investment property. I have also heard of real estate companies that buy your home if not sold....remax?? Maybe someone knows. Good luck...don't lose your new job, even if you rent your house for a bit less than your mortgage. I rent out a little house that I bought several years ago...
Last edited by JanND; 08-30-2012 at 04:54 AM..
Reason: edit
I have bought a house and I am now working out of town a lot, and i don't want to sell my home can I rent out that home to other tenants for the amount of the mortgage? Or could I allow section 8 tenants pay rent if yes what are the pros and cons?
i don't want to sell my home can I rent out that home... ?
The parties to ask are your mortgage holder and your insurance agent.
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