The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: crazysteve5575 on January 04, 2017, 09:39:30 AM
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My Wife and i just purchased a new home, and we are trying to decide if we should sell our current home or use it as rental property.
I have owned the house since 2001. the home was originally built in 1936. Its located right next to a community college. the basement leaks so it is damp and or wet at times. We need to take the detached garage down due to tree roots pushing the walls in(this will be done regardless if we sell or not.) and the bathroom needs to be remodeled prior to us renting it. if we sell we would try to sell it with the bathroom in its current condition.
I think i would need to hire a property management company, to handle the credit checks for potential renters. I can handle most repairs myself, but i dont know how well i would deal with issues should a renter not pay, ect.
We had to dump the majority of our savings into the new house (which also requires work) with the initial though of replenishing our savings by selling our current home. We have flip flopped back and forth numerous times trying to decide to rent or sell it. I do think that this would be the only chance we would have to become land lords and obtain the passive income, but im not sure if its worth it.
we had been over paying the mortgage for the last 4 years (first 4 of the refi) so we were able to put a significant dent into the principal. We are just not really sure what the right move is.
Market Value: 119,580 (zillow estimate)
Original Purchase price: Not sure it was a very long time ago maybe 90K
Original Mortgage Amount: i refinanced 4 years ago and the principal was 50K
Interest Rate: 3.87500
Mortgage Term: 20 years
Term remaining: 16 years (not counting what we over paid, not sure how to calculate that)
Amount remaining on mortgage: 34161.45
Gross Rents: Zillow says i could rent it for 1400 a month not sure how accurate that is.
Principal and Interest (the P&I of your PITI - should match with the above info): 193.14+110.94 =304.08
Taxes and Insurance (the T&I of your PITI): 424.66
Monthly Mortgage Bill: 728.74
HOA costs:0
Deferred maintenance notes: immediate: Bathroom Remodel 5K, Detached garage demolition 3K Future: Furnace and Porch unknown costs
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.):