Author Topic: Case Study: Sell or Rent?  (Read 898 times)

bhansell

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Case Study: Sell or Rent?
« on: January 01, 2017, 08:34:10 PM »
Hello,

I am trying to determine if my wife and I should sell or rent our current house.  I stumbled upon this forum while doing some internet research and it seems to be a great resource.  Any feedback would be appreciated.  Details below:

Market Value:  $310,000 to $330,000
Original Purchase price:  $270,000
Original Mortgage Amount:  $100,000
Interest Rate:  3.375%
Mortgage Term:  15 years
Term remaining:  12 years
Amount remaining on mortgage:  $59,000
Anticipated Rent:  $2,000 per month
Principal and Interest:  $708 per month
Taxes and Insurance:  $314 per month
HOA costs:  $500 per year
Deferred maintenance notes:  We built the house in 2014, so it is in good condition.  Just my wife and I, no pets or children.

Additional details:  We will be moving about 2000 miles away in six months, and will live there for three years.  We intend to rent there.  There is a small chance we could return to this house in three years, which would be great.  We love the home, but it's a slim chance.  The town itself is growing with a good local economy.  It is a military town, so there's always an influx of new people and the house should be easy to find renters. 

Any feedback would be great.  We are both first-time home sellers/renters.  Thank you!

-Brian

bhansell

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Re: Case Study: Sell or Rent?
« Reply #1 on: January 03, 2017, 11:32:29 AM »
Lhamo,

Thanks for the response.  Since we may want to buy a house in three years (after we leave our next duty station), I'm expecting that if we sold our current house the money would sit in a conservative investment making much less than 5% (my thought right now would be a three year CD).  Is there a better place to park the money to get better returns?  Also, does that change your advice at all, since renting appears to be a better strictly financial option?  We currently max out our tax deferred retirement options that I know of (TSP, both of our IRAs).  Thanks again!