Would you go from homeowner to renter?

[puzzleannie]

also besides just renting out your current home, be willing to be creative in financing, including taking back the mortgage yourself, or lease to own. be meticulous about references and financial checks and get a RE lawyer to guide you, not just a GP lawyer.

 

[lizaanne]

You might want to look into buying your neighbor’s old house and renting it out. If it’s truly that cheap, you could probably rent it out for more than the mortgage payment and taxes. What are rents for homes in your area? And just think, when the real estate market bounces back - and it will - you will only have $42,000 into your investment property. Your mortgage broker can tell you about no down payment options to make it easy for you.

This is really funny that you say this - I just got off the phone with the listing agent on that house because he has some very important key pieces of information missing in the listing that will help him sell the house. He said the same exact things you do here which do make me wonder if we shouldn’t consider this. He said we could probably get the house for around $30,000.

Hmmmmmm…

~Liza

 

[jc-servant]

This is really funny that you say this - I just got off the phone with the listing agent on that house because he has some very important key pieces of information missing in the listing that will help him sell the house. He said the same exact things you do here which do make me wonder if we shouldn’t consider this. He said we could probably get the house for around $30,000.

Hmmmmmm…

~Liza

Don’t do this buy/rent thing if you cannot comfortably afford to make both mortgage payments and all of the property taxes, etc even if the new place fails to get/stay rented. The housing market it pretty wonky right now. Remember that you will be responsible for all of the upkeep on 2 homes when just 1 is giving you a pain right now! Also tenants can do some real damage and run off leaving you holding the bag if they have no assets to tap.

 

[lizaanne]

Don’t do this buy/rent thing if you cannot comfortably afford to make both mortgage payments and all of the property taxes, etc even if the new place fails to get/stay rented. The housing market it pretty wonky right now. Remember that you will be responsible for all of the upkeep on 2 homes when just 1 is giving you a pain right now! Also tenants can do some real damage and run off leaving you holding the bag if they have no assets to tap.

As much as I really would love this idea - assets are something we really don’t have much of these days! But I did get to dream for an afternoon. hehehe

~Liza

 

[minnieg]

ABSOLUTELY! I didn’t read anyone else’s responses, but I have been in a similar situation. We were house poor, and after years of struggling, we sold, rented for a while, and then bought something sensible well within our range, and it was close to hubby’s work and in a good school zone.

It was one of the best things that we ever did, on so many levels.
A few things to clarify - we rented for only 3.5 months, but all our things were in storage, and I was expecting a baby. Also, there were only 4 of us (2 adults, 2 kids). Finally, our choice to rent had more to do with indecision regarding job location. And we were paying high rent, so we weren’t saving anything.

But it all allowed us to buy something we really like. We are so surprised how much we love our location, and even our house, because it’s very humble compared to our former house. Built in the 1950s with a kitchen that has not been updated, except for the dishwasher. And it’s all perfect for us right now!
This whole move has demonstrated to me that God often has plans for us that we wouldn’t choose at first, but that time shows to be the best!

Blessings on your decisions and your move.

 

[Sure]

As much as I really would love this idea - assets are something we really don’t have much of these days! But I did get to dream for an afternoon. hehehe

~Liza

Buy it.

A $30,000 mortgage is going to run you about $170 per month. I bet you could rent it out for more than that. You are buying low and someday you can sell high. Talk to your mortgage broker. I bet he can find you a low rate with no money down and no closing costs. Don’t give up on this without getting all the details.

 

[housewife]

Er, how can you sell a house and make your money back when a similar house is renting for $400 less?

Seems to me you are stuck in a bad place until the market improves. Whatever you do, don’t make any stupid decisions like selling it for a loss and spreading out the difference over the next 50 years on a new loan.

I totally agree with this one. Hang in there. Great things come for those who wait. See it as an “in the meantime” deal.

 

[lizaanne]

Buy it.

A $30,000 mortgage is going to run you about $170 per month. I bet you could rent it out for more than that. You are buying low and someday you can sell high. Talk to your mortgage broker. I bet he can find you a low rate with no money down and no closing costs. Don’t give up on this without getting all the details.

Oh geeze - see, now you are making me interested again!!!

I guess the only other concern I would have is just the whole landlord aspect, and living next door to renters. I don’t know if I would want someone knocking on my door at all hours.

~Liza

 

[duskyjewel]

Update… talked to one guy, wouldn’t even offer me what we owe! So no go, at least for now.

1ke, I am all about doing what’s right for the family. I do think that some family members would look upon such a decision as unwise, but I know all the reasons why it would not be.

We have lived here for nearly 4 years, so the cap gains tax should not be a problem. I had forgotten about the tax ramifications though, so thanks for that reminder.

I’ll keep looking for options and trying, but for now I guess we are stuck! I agree with what someone else said… that in a couple years we may be able to get an absolutely rippin’ deal on a house even compared to right now! I want to be ready to pounce! My oldest is disappointed about not getting her own room yet, but it won’t kill her. We need to address that soon, though, because her little sister really does drive her nuts. And she’s approaching adolescence, while her sister starts kindergarten this year. It would be better for her to have her own space and for the 2 littler girls to share.

But, for now… status quo! Thanks, all!

 

[Sure]

Oh geeze - see, now you are making me interested again!!!

I guess the only other concern I would have is just the whole landlord aspect, and living next door to renters. I don’t know if I would want someone knocking on my door at all hours.

~Liza

You might as well gather all the facts and run all the numbers before saying no. On the plus side, you would be in control of who your neighbors are. Maybe you could find a nice young catholic couple from the local parish. If it were me, I’d do all the homework and then decide yes or no. But buying a cheap house right now could be a very nice investment in 5 years!