I'm currently in the process of trying to sell my house since we had to relocate for my husband to find a job. We are in a situation where what we owe on it is about what we can hope to get selling, meaning that closing costs would have to come out of pocket. Response to the house has been underwhelming so we just agreed to a price reduction. The price reduction may help, but so far no offers have been made and I am worried that the house might be worth less than we anticipated. I'm now wondering if trying to sell it is stupid and if it makes more sense to rent it out instead.
House
Current asking price: $119,900
Original Purchase Price: $130,500 (Thanks, housing bubble)
Estimated rental value: $1000 per month
Mortgage (refinanced)
Original Loan Amount: $122,400
Term: 30 year
Interest rate: 3.99%
Balance: $114,614
Maturity date: 02/01/2042
Monthly payment (P/I): $583.65
Monthly payment (escrow): $239.89
Other notes:
House is a 3 bed / 1 bath in a city that has higher housing prices than nearby areas, and is desirable because of the awesome schools.
Our new location is about a two hour drive from the house.
We do not have any previous landlord experience, so I'm concerned about our lack of experience.
House is mostly is good shape, everything is working. My main concern is that it may need new siding in a few years.
Basically, I'm wondering if renting would be profitable for us. If it is, it seems like that would be a better idea than trying to sell right now which, after commissions and closing costs, is going to cost us thousands of dollars at closing.