Bought a house for 167k two years ago, interest rate is sub 3%. Do I sell it at 260k now? Or rent it out to collect 600+ on top of the mortgage? It's in an area that will always have renters, top end college kids? It's in college station so insulated from the potential housing crash. What say you?
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Last: 3 yr ago by Tibbers
So you paid $167k plus closing or financed $167k?
Realtors and title companies will take $12-15k.
Is this your primary residence? If so, your interest rate will double if you buy something else at inflated prices as well, there is no way I'd sell if it's your PR.
Realtors and title companies will take $12-15k.
Is this your primary residence? If so, your interest rate will double if you buy something else at inflated prices as well, there is no way I'd sell if it's your PR.
Yes it's my PR but I'm looking at renting and moving up north. My first home and I'm not really prone to having stuff and things. No family, no kids, no obligation.
Absolutely rent it out 100% it is a complete no brainer IMO. It would be foolish to sell.
Moving up north as in where and why? If you're talking about north Texas then you are going to pay sky high for rent. What area of CS is it in, subdivision name, etc?
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Rent it. Luke can help you with leasing and PM.
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I say if you don't need to move, stay put. If you need a change of scenery and don't have plans to stay in CS, sell.
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Tibbers said:
Bought a house for 167k two years ago, interest rate is sub 3%. Do I sell it at 260k now? Or rent it out to collect 600+ on top of the mortgage? It's in an area that will always have renters, top end college kids? It's in college station so insulated from the potential housing crash. What say you?
How long have you lived there? If you've been there for 2 years, you'll still be able to sell with cap gains tax avoid with that 2 out of last 5 years rule. I'd say rent it.
Gives you 3 years of someone else paying the mortgage plus the positive Cashflow. You can see how you like it and then can sell it. Appreciation could also be an added dollop of daisys to your return if the area you mentioned it in keeps up.
A bird in the hand…
Really, you have to figure what works best for you. If you are out of town, what do you do if you have a bad tenant ? Do you want to deal with issues if not around? Being a landlord is easy, until it's not. And, despite what we all think we know, there is no guarantee that prices will continue to go up.
Really, you have to figure what works best for you. If you are out of town, what do you do if you have a bad tenant ? Do you want to deal with issues if not around? Being a landlord is easy, until it's not. And, despite what we all think we know, there is no guarantee that prices will continue to go up.
Cap gains happens after 5 years?
No. You must live in the home 2 of the last 5 years. There is a thread here about some exceptions so try to find that one
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SteveBott said:
No. You must live in the home 2 of the last 5 years. There is a thread here about some exceptions so try to find that one
Correct. Basics are only claim once every two years. Had to live in the house as a primary residence at least 2 out of the last 5 years.
Oh ok, all good then. I'll probably just stay and rent it out. **** it. I should consider myself lucky for the interest rate but this town is getting to me. Getting stir crazy.
you should write a country song about it
Nobody has died yet......Diggity said:
you should write a country song about it
Ronnie '88
There's a formula for that.
Country music sucks but I feel ya.
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