Sorry in advance for the long thread, but I need some advice about making some huge changes!
My wife and I may soon see an opportunity to relocate to pursue career changes (for the better, for both of us). Our combined income would likely stay flat as mine would decrease, but hers would increase; however my hours would drop from ~60/wk to 40/wk and the work actually be fulfilling to me on a personal level as opposed to what I currently do. If we were renters, the decision would be a no-brainer, but back in July 2012, before I had found MMM, we "purchased" our first house. It was...an experience. I learned a lot about things you should and should not do when buying a house. After a scant two years of "ownership," we are faced with the decision of renting or selling if we relocate.
In addition to the information below, we would be selling one vehicle and cutting about $150 in gas and insurance out of our monthly expenses. If we sell, we face a significant (to us) loss due to the related selling fees (we'll end up having to pay something like $3000, which is more than we have in savings since I have been aggressively paying down our consumer debt). If we keep the house and rent, I know we're not going to be able to hit the 1%; in a few years, MIP falling off would make the house more desirable as a rental property, but in the meantime, it would be an occasional money sink as the HVAC and water heater are older systems (I assume a negative cashflow while we have to pay MIP). I believe our very close (immediate family) REA contact would be willing to assist in selling the house in some capacity that would reduce our costs, by helping us review offers and counter if we decided to sell - and potentially acting as the buyers' agent at a reduced commission.
Taking this opportunity would set us up for future success and seems like it would be a huge upgrade to my QoL (I am not motivated by what I do currently and put in way too much time).
Market Value: $108k per Zillow (have not talked to a REA - could be different from the market and this neighborhood seems to have pretty quick turnover)
Original Purchase price: $112.5k, net of related fees
Original Mortgage Amount: $110,461 ($3,319.80 as prepaid finance charges)
Interest Rate: 3.375% (APR 4.3205%)
Mortgage Term: 360 mo.
Term remaining: 339 mo.
Amount remaining on mortgage: ~106k
Gross Rents: ~1000+-50
Principal and Interest (the P&I of your PITI - should match with the above info): $488.34
Taxes and Insurance (the T&I of your PITI): ~$250
HOA costs: N/A
Deferred maintenance notes: HVAC and water heater are near EOL; lots of little, issues
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.): Quiet neighborhood full of SFH, abutts a large, empty field, close to hospitals/medical facilities, vets, a huge park, Lowes, shopping, banks, biking trails, golf, and all of the local, major roadways (good location for a working family). Not a lot of rental houses in the area.
Any emotionless suggestions for whether to rent sub-optimally as first-time landlords or sell at a loss that would be a struggle to swallow, financially? Any suggestions for more information?
I would assume that we would have to pay about $100/mo. May - Oct for lawn care costs. Furthermore, I do not know whether we would ever return to this area.
If we do not sell, we will be limited to renting ourselves for several more years and will be paying close to the same price. One factor that goes against renting is the first year would be very risky as we build a cash reserve, though we could do that at a rate of probably $700+/mo. if we make minimum debt payments for a while. Rent or sell, we're going to be locked out of the housing market for years (next house WILL be financed after we have our 20% DP) if/when this opportunity hits, which bothers me as an avid DIYer!
