Thursday, January 31, 2013

To Rent or To Sell??

That IS the question!

Basic Condo Details:
Upper unit
3 bed 
1 bath 
1105 Sq. Ft. (No garage) 
Community Pool

Condo Purchase Price Sep 2011: $57,500
Remodel Expenses: $10,000+
Total Cost of Condo: $67,500
Current Condo Value Jan 2013: $80,000 or $750 Monthly Rent

So those are the quick figures to do the simple math...


*If we sell now we'll be hit with high income tax rates(we haven't lived here for 2 years yet). I don't know how much higher the rate is(anyone else know?)
*Sept 26, 2013 will be 2 years(Still 8 months away)
*Baby #4 will arrive in first part of June(4 months prior to the 2 year mark)
*If we wait and sell the value could change, but assuming it doesn't... that's $12,500 profit and a lot more back in our pocket since the remodel was paid for in cash and we don't owe the full $57,500.
Estimating it to be about a $28-32,000 lump of cash. Which would pay off student debt completely and then some.


*If we rent it out, we can do it now and buy a home any day. It does lower our $ amount we are qualified to borrow by about $20,000-25,000 though.
*We could rent it for $750, possibly even $800 a month(paying for monthly mortgage twice)
*We would not be paying off student loans near as fast but we would have the rental income for years to come.

So seriously! Help me out....

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Carri said...

Sell. If you rent, you run the risk of renters damaging something that you will have to fix, risking losing money. You also run the risk of people not paying you, then you have to pay it, plus the other rent/mortgage of where you are living.

Julie said...

Bah, lol... selling does make a lot of sense. It just means we have to live here for another 8 months. *Sigh* I think I just need to go on vacation and hire a maid and professional organizer while I'm gone so I come home to spotless home. The limited space feels so suffocating with 5 of us! lol... 8 months... it's not terribly long, shorter than a normal pregnancy...I think I can, I think I can...

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