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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: beechnut on July 28, 2017, 10:04:25 AM

Title: Sell or Rent Case Study- Portland ,OR
Post by: beechnut on July 28, 2017, 10:04:25 AM
Hey everyone- looking for some guidance- leaning towards renting on our first home but would love your suggestions! Here's the breakdown:

Market Value: 375,000
Original Purchase price: 229,000
Original Mortgage Amount: 217,500
Interest Rate: 3.375
Mortgage Term: 30
Term remaining: 25
Amount remaining on mortgage: 197,000
Gross Rents: 2200-2500$
Principal and Interest (the P&I of your PITI - should match with the above info): $975
Taxes and Insurance (the T&I of your PITI):  $215
HOA costs:none
Deferred maintenance notes: likely to need a new heater/ roof in the next 5/10/15 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.):

We have a second baby on the way, so will likely use a property management company as we work full time and our bandwith with be super low. if we go renting route so add 175-225$ a month for that, and lease up fee from them (if you know any good ones in PDX, give me a holler!!). Also this would be our first time being landlords so are somewhat anxious about it but also will be moving right down the street (5 houses away) so that will be helpful to keep an eye on things.

Thank you all for taking a look and analyzing...
Title: Re: Sell or Rent Case Study- Portland ,OR
Post by: waltworks on July 28, 2017, 01:01:17 PM
It's not going to make you much money compared to other investments, probably, but you've got 2 years before the capital gains exclusion goes away, so try it for a year and see how it goes.

Title: Re: Sell or Rent Case Study- Portland ,OR
Post by: pdxvandal on August 06, 2017, 01:20:13 PM
They should have 3 years until the capital gains tax would take effect after selling. Two years in the property as your primary home is the minimum to qualify.

As waltworks said, I'd try to rent it out for a year and see how it goes. You should have great cash flow.
Title: Re: Sell or Rent Case Study- Portland ,OR
Post by: srad on August 07, 2017, 11:34:59 AM
My words of advice, don't use a property management company.  If your home is well updated all you have to do is get it rented.  That's a few pictures posted to an add on Craigslist, you are in Portland, if your rent is at market, you will have it rented in less than a week.  I have rentals in Portland and Corvallis, I self manage all of them and work a 40+ hour a week job. 

One single family home 5 houses away and you are willing to pay someone over 2k a year to collect your rent and post one add?   Shoot, I lived in NY for 2 years and self managed my Portland properties while over there.  At least attempt to self manage,  if you find it does take too much of your time, then go get a manager.  Actually,,,, hit me up. I could do it for a lot less than the 8-10% a PM will charge.
Title: Re: Sell or Rent Case Study- Portland ,OR
Post by: beechnut on August 07, 2017, 03:51:28 PM
Thanks for the tips and advice everyone- after meeting with a PM company here- if we are going to go with renting, we are def going to self you all said, just doesn't seem like the 8/10% is worth what they really provide with on a simple SFH rental down the street from us we can easily pop in on.  Got that crossed of the list of things to do.