Author Topic: Moving - Rent or Sell Current Home?  (Read 1203 times)


  • 5 O'Clock Shadow
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  • Posts: 13
Moving - Rent or Sell Current Home?
« on: April 24, 2015, 06:57:37 AM »
Hello Everyone,

I've been a long time reader, and wanted to get the thoughts and input from the group on a decision I've got rapidly approaching.  I was just offered a new position near Memphis, TN, so I'm moving within 3-6 weeks.


-Currently own home in central FL, along I-4 corridor
-Original mortgage $86k
-Currently owe $82.5k
-Mortgage payments = $680/month through the rest of the year, $750 thereafter
        -$50k tax exemption would not be renewable if I move, thus the higher payments

Option 1: Sell

-Realtor approximates $110k conservative selling price, $120k stretch
-Would after fees, taxes, etc would walk away with ~$20k off $110k sale price

Option 2: Rent

-Have two friends that are discussing renting house out from me
         -Would still have them sign contract
-Rent would be slightly discounted off market rate at $900/month
         -They would be responsible for 'normal' landlord duties
                    -basic repairs, lawn, etc
         -I would be responsible for major repairs
         -Assuming this would roll to be slightly cash flow positive before tax considerations


-I'm not necessarily concerned about the guys I'd be renting to, but I am worried about the what would happen after they leave
         -Moving 3 states away
-Real estate along the I-4 corridor has been booming lately (~+25% YOY)
-Zillow (FWIW) estimates 6% increase in home prices in my area over next year
-Already pre-approved for another mortgage while holding current one, so sale is not a requirement for my move

Question: I understand that a lot of emotion/personal preference comes into play with these decisions, but from a pure financial standpoint, should I rent or sell?

Inputting Data from Sticky:

Market Value: $110k
Original Purchase price: $88k with 6% back
Original Mortgage Amount: $86k
Interest Rate: 3.125%
Mortgage Term: 30 years
Term remaining: 28 years
Amount remaining on mortgage: $82.5k
Gross Rents: $900/mont ($10,800 annual)
Principal and Interest (the P&I of your PITI - should match with the above info): $375/month
Taxes and Insurance (the T&I of your PITI): $305/month until December, $380 thereafter
HOA costs: $0
Deferred maintenance notes: may need some electrical work in next few years, will need a new roof within 5-6 years
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.): see above
« Last Edit: April 24, 2015, 07:06:07 AM by Googs860 »


  • Magnum Stache
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  • Posts: 4731
Re: Moving - Rent or Sell Current Home?
« Reply #1 on: April 24, 2015, 07:34:25 AM »
I don't like to mix friends and money, and it's just barely going to cash flow based on 50% rule... so I personally would sell. You could hold onto it and not be doing horribly, though, so it really comes down to how much you want to be a landlord for your friends.



  • 5 O'Clock Shadow
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  • Posts: 2
Re: Moving - Rent or Sell Current Home?
« Reply #2 on: April 27, 2015, 02:41:48 AM »
Read taken to try it.