Risky to move when rental value may barely cover expenses.

[orcateeth]

I had posted a few months ago, stating that I thought that I could rent my condo for $1600 per month. I was wrong. After careful research, I see that units like mine are renting for about $1,200. This is pretty much exactly my monthly mortgage and assessment. There would be no extra to cover if the tenant did not pay or if there was a large repair bill.

In addition, these other units are recently upgraded with all new appliances, new bathrooms and kitchen cabinets. My unit has old appliances and decor. If I make upgrades, this could cost $5000 or more. So I may get far less than $1,200.

I live about an hour from work, and would like to move closer to cut down on the commute. The closer I get to work, the higher the prices are. My current residence includes a free parking space right outside, so I might have to then pay for parking. (My job requires a car.) I work for a large governmental agency, but there are no other positions available for which I can qualify. With 20 years invested, I can't change employers.

Condo is still underwater, and I would have to bring 30K to the closing table to sell it. Short sale is unlikely, but I guess I could attempt it(?)

I also am paying $200-$400 to support my unemployed, somewhat disabled brother, who is looking for work. However, he is 55 and has no work history, so this may or may not happen. It makes me nervous to potentially have to pay on three properties (if the tenant stops paying).

How does one move when the rent payment may make a risky situation?

[SaintM]

You have worked for the government (fed, IL?) for 20 years. I assume you have to work a set period of time for a pension or retirement plan to vest. How much longer do you need to work for this employer?

[orcateeth]

From the benefits website:

Please be advised the minimum requirements to receive a monthly annuity are:
age 50 with a minimum of 30 years of service
age 55 with a minimum of 20 years of service
age 60 with any number of years of service at the time of resignation

It pays a higher amount when you work longer. I will have to pay for my own health insurance premium. Also, I just refinanced my mortgage last year (19 years left, can make extra payments to reduce this time frame).