I need some home advice. I bought a home 5 years ago when I lived in Michigan. My plan was to live there 10+ years. But two years ago, I moved to Chicago for better job opportunities for fear of being let go at my Michigan role (they had recently let go 30 of the 34 people in my group). Thankfully my brother was still in Michigan and rented the house from me.
Flash forward to the present. My brother is moving out of Michigan at the end of this month and I am moving to Portland, OR for a large pay raise and better employment opportunity. The problem I have now is the house. I owe $104,830.00. It is probably worth $100,000 right now. So add in the 8-10% realtor fees, I am $13,000-$15,000 underwater.
My first gut reaction was to rent it out. But thanks to a recent bathroom disaster, the bathroom needs to be remodeled. The tiles around the shower crumbled, revealing a molded soaked drywall behind it. I have stripped the walls to the studs for the time being but have not gone further.
So what options do I have?
1) Take out a loan to remodel the bathroom and do minor maintenance items ($5k-$10k). Then hire a property manager to rent it out. Mortgage, escrow and insurance equals $940. I think it can rent for around $1000. So I would take a minor loss every month.
2) Take out a loan to remodel the bathroom and do minor maintenance items ($5k-$10k). Then list the home with hopes of selling for $110,000+. It should be worth $110k-$115k once the bathroom is remodeled.
3) Put the house up for sale. Take out a loan to cover the negative equity.
4) Hire someone to maintain the home. Continue to pay the mortgage until I am not underwater and can sell or can slowly save for the renovations needed.
Some of the renovations/maintenance I could do myself. Unfortunately I leave for Oregon on Thursday. I am leaning towards option 1. But the idea of going further in debt when I am desperately trying to pay off credit cards from past immature mistakes makes me cringe. But that may be the only option I have right now.
Lay it on me Mustachians...