Author Topic: Case Study: Sell or Rent house in Portland  (Read 2350 times)

justostash

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Case Study: Sell or Rent house in Portland
« on: February 10, 2017, 04:30:44 PM »
Thanks in advance for any advice on this big decision that has been weighing me down lately.

I have recently moved out of my house and into a rental house with a housemate.  I lived in and loved my house for 10 years, but I grew to hate the busier and busier street that my house was located on. It is a 4 bed / 2 bath house in SE Portland.

Market Value: (Zestimate says $459K)
Original Purchase price:240K + 60K in major renovations
Original Mortgage Amount: 200K
Interest Rate: 3.25%
Mortgage Term: 15 yr
Term remaining: ~11 yr
Amount remaining on mortgage: 99K
Gross Rents: It looks like it could rent for about $2,400 / mo)
Principal and Interest: $1,033 / mo
Taxes and Insurance: $3,900 / yr
Deferred maintenance notes: No maintenance needed.

It would be a good rental, but I am adverse to dealing with landlord issues.  I could of course get a management company to take care of all that for me.

What do you kind folks think I should do?  Sell or rent?  I do not have any great financial need to sell it, but I also kind of 'just want to be done' with it and not have the stress of owning rental property.  I did rent it out once for a year and half to a nice family with good credit and income, but it ended in disaster when they stopped paying rent for 2 months due to job loss.  It caused me major stress and heartache as I did not want to evict this family in hard times.

Appreciate the advice!

pbkmaine

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Re: Case Study: Sell or Rent house in Portland
« Reply #1 on: February 10, 2017, 04:55:05 PM »
I also kind of 'just want to be done' with it and not have the stress of owning rental property. 

There's your answer.

justostash

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Re: Case Study: Sell or Rent house in Portland
« Reply #2 on: February 10, 2017, 05:09:55 PM »
Thanks pbkmaine! Sometimes it is good to have your own words reflected back!  I want to make sure I'm making an informed decision that is fairly logical and not entirely emotional.

former player

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Re: Case Study: Sell or Rent house in Portland
« Reply #3 on: February 10, 2017, 05:18:10 PM »
You're out of love with the house and don't care for dealing with tenants.  I agree: sell it.

The only question is: do you buy something that suits you better or put it in Vanguard?

Meowmalade

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Re: Case Study: Sell or Rent house in Portland
« Reply #4 on: February 10, 2017, 06:36:37 PM »
Sell!  I was a landlord for two years after we left Austin and I thought I should rent it out because it was in such a great location.  I ended up having the worst tenants who were vetted by my supposedly reputable property manager (my neighbor thought they were dealing drugs out of my condo!) and it was so stressful.  You've already experienced when a tenant doesn't work out; just listen to your gut and sell  :)

justostash

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Re: Case Study: Sell or Rent house in Portland
« Reply #5 on: February 11, 2017, 10:28:11 AM »
Thanks for all the advice pbkmaine, former player, and Meowmalade! It sounds like we all know what I have to do. Now, I just have to choose a method to sell. Appreciate your time!

lizzzi

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Re: Case Study: Sell or Rent house in Portland
« Reply #6 on: February 11, 2017, 10:33:43 AM »
Sounds like it is disturbing your karma. I would unload it.

Not sure it matters in this context, but...Portland, Maine, or Portland, Oregon?

justostash

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Re: Case Study: Sell or Rent house in Portland
« Reply #7 on: February 11, 2017, 10:45:48 AM »
Thanks lizzzi: Portland, OR... It's in a popular location, so hot market to sell or rent.

CDP45

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Re: Case Study: Sell or Rent house in Portland
« Reply #8 on: February 12, 2017, 09:42:16 PM »
What about AirBNB and wait another year for an additional 10-15% appreciation? Also another reason not to rent is the new $4,900 eviction tax..

And $2,400/mo is not high enough for a $450k house, that barely covers the mortgage payment let alone any return for you or costs to manage.

calimom

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Re: Case Study: Sell or Rent house in Portland
« Reply #9 on: February 12, 2017, 10:16:05 PM »
Sounds like it is disturbing your karma. I would unload it.

Not sure it matters in this context, but...Portland, Maine, or Portland, Oregon?

I'm going to guess Oregon. Because someone in Maine would say so because that's how they do things there. And Portland, Oregon is, well "Portland", because, well, Portland.

humbleMouse

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Re: Case Study: Sell or Rent house in Portland
« Reply #10 on: February 19, 2017, 10:35:32 AM »
Sell it!  $2400/month for a 450k house is way too low.  I could rent my house out for way more than 2,400 and my house is worth like 300k

ncornilsen

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Re: Case Study: Sell or Rent house in Portland
« Reply #11 on: February 20, 2017, 08:05:39 AM »
Sell for sure. Portland is rapidly becoming unfriendly to landlords anyway (Suburbs are slowly following suit.) and property values are too high for a good cashflow return.


justostash

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Re: Case Study: Sell or Rent house in Portland
« Reply #12 on: July 20, 2017, 07:38:18 AM »
Just thought I'd follow-up on this message and share that I did end-up selling.  The sale was a bit painful and protracted due to several weeks of closing extensions caused by some last minute lender issues w/ the buyer.  But in the end it came through. Definitely a big weight off my shoulders. I've also moved into a contracting role with my job and am well on my way to a more flexible life. Now onto investment strategies for the sale proceeds.  Thanks again for your advice everybody!