The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: LearningMustachian72 on July 13, 2018, 10:00:08 AM
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Hey!
I bought a house last May (2017) and currently have a 45 minute commute between getting to the bus and taking it downtown, which is really bumming me out!
I originally bought the house because it is in a good school district and I did not want to have to move again when my kids were of school age but I do not think I can take the commute/living in the burbs anymore.
My goal is to just move into a smaller house close to the city, however, I do not want to lose too much on the sale of my home. I am considering renting it for the time being but it appears the rental rates would be about 200 less than my mortgage payment...would this be crazy?
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Can't speak to 'crazy', and perhaps not even to "will this rental generate cash flow"... but as the Magic 8 Ball of rentals says:
Signs point to No.
SFH costs are beyond mortgage: Taxes, Insurance, Repairs, Property Management, HOA fees (if any), etc.
Without actual numbers, it's hard to say. You can use Zillow's 'Rent Zestimate' as a starting point to see what you might be able to attract in rents. Depending on how much your house has appreciated, you may be better off selling. All the best! MFB
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Without more details (see the "rent or sell" sticky at the top of the forum) it's hard to say for sure, but if your anticipated rent is less than your mortgage payment (setting aside vacancy, management costs, maintenance, etc) then the only reason to hang onto the house would be if you expect lots of appreciation, since you'll be losing money each month.
-W