The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: dannyhagglund on January 27, 2017, 07:25:02 AM
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Hello Everyone,
Just need to little help deciding what would be the best financial decision. My fiancé and I will be getting married in August and we decide to quit our jobs and go back to 5 months contracts working for the United States Antarctic Program in Antarctica. The contract normally start in late Sept / Early Oct ending Late Feb / early March. We both spent a couple seasons with the program before so we know what to expect financially. We would like to spend a few months traveling South America which is our last continent. We would have PM look after the place while we are gone for the 8 months. My intentions are to keep doing the seasonal work and travel for 2-3 years and I would like to keep the home to have a place to comeback and relax during the summer months.
Market Value: 169,000 "List price after speaking with a Realtor"
Original Purchase price:155,500 + 4500 closing cost = 160,000
Original Mortgage Amount: 125,500 20% down payment
Interest Rate: 3.875
Mortgage Term: 30
Term remaining: 28
Amount remaining on mortgage: 118,000
Gross Rents: 1200-1300 monthly "after speaking with PM"
Principal and Interest (the P&I of your PITI - should match with the above info): 590.39
Taxes and Insurance (the T&I of your PITI): 208.48
HOA costs: 0
Deferred maintenance notes: 6ac. Log Cabin Chalet style house with a 2 stall garage 2 BR & 2 bath, partially finished basement, recently update after purchasing New wood floors, Updated Bathroom, and installing new bathroom in the basement. $16,000 in repairs and updates since purchasing home. Home is solid condition most, if not all big ticket items have been replace or are new.
Property Manager cost:, 50% for first months rent, 10% monthly rent after the first month.
My question is Sell, rent using a Property Manager or have friends watch the house paying all utilities / take care of the place while I cover the mortgage.
Side note, I live in Maine moved from the Midwest. No family around.
Thanks for the Help.
-Danny
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The numbers aren't an ideal rental, but nor are they terrible.
The interest rate is low, and the transactional costs on selling now, and buying later would likely be a bigger loss than the opportunity cost on the money frmo selling and investing in something better.
Since you're intending to come back (even in a few years), I'd keep it.
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Thank you for your post. My thoughts are to come back during the summers and start the process over again with 6-8 months lease for a year or 2. I don't intend to stay long term into the future and would like to relocate back home after we finish our travels. Does this change your opinion? Any advice helps. THANKS
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I would suggest you to rent your home.