Rent or Sell?
I bought a SFH and moving there in 2 weeks. I currently own and staying in a townhouse which I bought 5 years back on 5/1 ARM so it’s due for refinance. Townhouse is relatively new ( built in 2013) and very desirable in terms of layout and location(great for commuters working in city or South Bay) etc. the only issue is it’s right next to freeway(101) and you can hear the noise when windows are open but not otherwise. It also has the HOA I am not sure whether I should sell it or rent it . I got some good interest when I put it on Craigslist for rent. Rent amount that I listed for would cover mortgage+hoa+property tax I am new in this field and no idea how to be a landlord and don’t know of any individual/company who does property management (although these things can be figured out) Less risky option: it’s a townhouse with an hoa + it’s beside freeway, i am thinking of just taking out profit (300k+ based on comparable) by selling it (assuming I get an offer). Although not sure what would I do with that cash ( may be buy a rental property in some other state?) Or I can be more optimistic renting it thinking that with time it would appreciate long term (10+ years), i would pay off the mortgage in 3-4 years and and I would continue to get rent . What do you guys think? TC (combined) : 600k
You should rent it out. Yes, the real estate price has come down a bit, but I see rental price going up. More people are waiting to buy and renting instead. I have a couple rentals on the peninsula. It's pretty easy because you get high quality tenants. Condos and townhouses are good to rent out since they don't have much land to take care off.
This is tough, on the one hand never sell real estate but on the other hand never buy a townhouse...flip a coin.
Never sell real estate but especially Bay Area real estate if you don’t have to. About 10 years ago, my friend sold properties in Palo Alto and Mountain View, and very much regrets it. Re how to be a landlord, read: California Landlord's Law Book: Rights & Responsibilities:
Keep it. You can pass the tax basis onto your kids or transfer it to another home when you are set to retire. Prop 13 is very valuable
Don’t forget deductions for depreciation. Renting it out is definitely better.
Big housing lobby can congratulate themselves on doing a good job brainwashing you all. How can some of you come up with. statements like "whatever the situation is, keep it" ? A good answer would be: it depends. It's a complex calculation and more often than not it makes more sense to sell than to rent it out
Read about prop 13. Selling is betting it will be repealed
Keep it and rent out. No brainer considering rent covers all the costs. Imagine the value of home 10 to 20 years from now.
With the huge shitshow coming into the housing market soon I would try to sell at a current high point
What huge shitshow? 🔮
That one that everyone has been hoping will happen next years for the last 30 years.