The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: sammysensei on May 28, 2021, 02:32:28 PM
-
I'm in an interesting situation, and hoping to get some clear eyes to look at it. I bought a house for my mother back in 2012 for about 100K. My only investment was 10% down payment, and my mom made the mortgage payments effectively as rent. As she is getting older and with health conditions that require nursing care, we've decided to have her join my family and live with us. So the question: should we use her home as rental or sell? Mortgage is about $635 per month and we have roughly $75K left to pay. Local management company estimated rent would bring in $1K monthly. Current estimate on home value is $165-$180K. 3 br, 2 bath. We could use the sale of this home for the down payment for a new home we would need to purchase for my extended family, or we could try to keep for the cash flow. Any feedback much appreciated!
-
Sell! even without knowing where you are, this year is great timing for a relatively fast sale and good price. The house isn't very profitable or interesting as a rental, especially when you consider the headaches and the occasional maintenance costs. So this is your time to sell.
-
Thank you! This was my initial assessment as well. Great minds think alike! :)