Going to leave SF soon for another state. I have a 1bd condo in a prime location. If I sell it now, I'll take a ~100k hit according to redfin/zillow. If I rent it out, rent will barely cover HOA+interest+prop tax, so the condo will be a forced savings account with unknown apr. I can also wait until the summer and sell then, hoping that the prices will recover a bit, but then I'm out expenses for 6+ months. What would you do in my place? #housing #sanfrancisco
Forced savings + potential appreciation
Walk me through your numbers. How much is the potential rent, HOA, interest, property taxes? Whatâs your monthly mortgage?
Potential rent is ~3k, HOA+int+tax ~= 2800
So worst case is break even? Better than $100k loss?
Also how much TC you have and NW matters here. How much equity do you have in the condo? Youâre also betting on the vacancy rates to be zero and youâre probably not accounting for property manager fees. It really depends on your risk tolerance.
I'm not too concerned about the immediate cash flow, more like trying to minimize total losses.
You sound like youâre very well off. IDK if youâre want to deal with renting it out in such a tenant friendly state especially since youâre out of state. Maybe try selling in March? Thatâs only in 2 months. Donât forget selling costs you may be deeper in the hole than you thought. Leaving it vacant for a year probably costs about 30k-40k Iâm guessing? You also canât capture capital losses on a primary residence since itâs considered personal property. If you want to do that you need to first convert to a rental and rent for a few years. But thereâs also many caveats to that. Hire a CPA donât just blind.
Condo sales are up because itâs hard to find houses for sale. Talk to a couple of real estate agents and look at comps before you decide.
Yup, the data is two months behindâcondos are very competitive all of a sudden
If itâs a rental you can write off losses. Call a cpa.
airbnb?
Not an option unfortunately due to HOA
some smart ass making 1.3 m is looking to rent cheap here on another post