Author Topic: Rent or sell?  (Read 1357 times)

tmitchell

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Rent or sell?
« on: August 02, 2016, 06:25:41 PM »
Hi all

I purchased a 3br/2ba home in Aurora CO 80015 about 4 years ago for 250K. Zillow now puts it at 350k, though a realtor told me it'd probably sell for more like 300k.

My elderly mother has been living there paying under market, so it's generally been a bad deal for me, though she's been safe & happy. However it's just getting to be too much for her & me to manage (I live out of state), so she's moving into an apartment and I'm trying to figure out whether I should sell the house and be done, or put it under property management and try to sustain a second income stream. Although she's moving to an apartment I'll probably still be helping her out with about $300/mo to cover her rent and could use some income for that. However I'm not sure the math really works out given the cost of the property. Zillow says it will rent for $2200 but I think that may be high as well.

I'd be really curious to know what all you landlords think of this, or if there are any specific areas of research you can point me to as I make a decision.

Thank you!

ender

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Re: Rent or sell?
« Reply #1 on: August 02, 2016, 07:01:42 PM »
It's too much to manage so... you want to keep it as a rental?

That makes no sense to me.

arebelspy

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Re: Rent or sell?
« Reply #2 on: August 02, 2016, 07:35:27 PM »
There's a sticky in this forum on this exact topic.  :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

waltworks

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Re: Rent or sell?
« Reply #3 on: August 02, 2016, 10:15:53 PM »
Dump immediately. You already don't like dealing with it, and it fails the usual 1% rule metric. 0/2. If you were 1/2, there could be some debate here, but nobody is going to tell you do do something you don't like for minimal returns.

-Walt

Ensign1999

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Re: Rent or sell?
« Reply #4 on: August 03, 2016, 11:35:34 AM »
I'd recommend selling as well, but the actual numbers might say something else.

If you can sell and walk away with a nice profit, then that could offset the costs of helping your Mom with her apartment.  You'd no longer have the equity of the house or the potential of a small income stream, but you'd be free of the headache.

I'd have a couple of realtors give you estimates on what they would list it for so you have more information than Zillow or what a friend guessed and then I'd also have a property manager or two give you what they would list it for as a rental.  Once you have those numbers you will be able to make an informed decision.  Odds are I might still sell if you don't want to deal with the place.

tmitchell

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Re: Rent or sell?
« Reply #5 on: August 03, 2016, 09:04:08 PM »
Thanks everyone! Very helpful. Sorry I missed the sticky, I'm still a posting loser ;).

I'll keep doing some research but it does seem selling may be the way to go.

Blindsquirrel

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Re: Rent or sell?
« Reply #6 on: August 07, 2016, 10:18:13 PM »
 Sell and see if you can get mom closer to you. Driving/flying to care for elderly parents sucks.However, they taught you how to use a spoon so what can you do.  Have driven 15,000 miles 215 miles at a shot doing it for a number of years.