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...
DO WE SELL?
*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.
DO WE RENT?
*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....
WHAT WOULD YOU DO AND WHY?
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