Author Topic: Should I rent out my Large house  (Read 3380 times)

bizzy

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Should I rent out my Large house
« on: March 21, 2015, 11:55:20 PM »
Hi guys/girls, I am in need of advice from anyone that has ever rented out a large home.
I live in Orange County CA and I own 3 homes. I have rented out 2 homes in the past but they are only about 1400 sqft. The current home that I live in is 3500 sqft with a large lot.
I don't like being a landlord and even if I am making good money in rentals right now I plan to eventually sell my rentals and just keep one house. I believe the stress associated with renting could be so stressful that in the long run I am not sure if its worth it.

But anyhow, the current situation is that I bought a larger home because I took advantage of the super low interest of 3.2 fixed two years ago. However I now drive one hour to work instead of 25 minutes before. I realized that I hate the extra drive and I wish I was back in my smaller house that is closer to work and my parents. I put my house on the market a month ago but nothing is selling right now in my area. everything around here is just not selling at the moment. We had a few showings but nothing. We work a lot in my family business so showing the house has been A PAIN IN THE ASS. I realize how stressful it is to get the house cleaned up all day for someone to just come one minute to look at the house and say "ok, thanks for your time". I don't know if there is a shift going on from a sellers market to a buyers market but it does not look good. I was thinking maybe renting this house in case I cant sell for what I want. I would really like to move back but I am not desperate. I could deal with the drive I just prefer to be closer to my parents and work. specially since I just found out that my dad is sick and he lives in the same city where I own my other house.

So the question is: Is it worth renting out such a large house? Could the wear and tear on such a large house eventually leave me regretting ever renting this large house?
My mortgage is 2,500 and the rents for this house go about 4,000. I pay about 8,500 on property taxes per year.

ShoulderThingThatGoesUp

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Re: Should I rent out my Large house
« Reply #1 on: March 22, 2015, 03:31:45 AM »
What price would get it under contract in under a month? What is it listed for?

I'm with you on showing your house being a huge pain.

Another Reader

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Re: Should I rent out my Large house
« Reply #2 on: March 22, 2015, 06:05:20 AM »
The market appears to be turning in all but the most desirable locations.  We are seeing some of that up in the Bay Area as well.

If you really want to sell, get ahead of the curve and reduce the price.  If the house is the lowest in the area for the quality, location, and size, it will sell.  If prices continue to go down, the buyer will have to deal with that.

clarkfan1979

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Re: Should I rent out my Large house
« Reply #3 on: March 22, 2015, 01:52:48 PM »
What is more stressful to you? Is it the commute or renting out the house?

If you are more stressed by the idea of renting the house out, it seems like you need to stay put. If the commute is killing you, then you need to start thinking of lowering the price. If you can deal with the commute then take your time and try to get as much as possible.

bizzy

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Re: Should I rent out my Large house
« Reply #4 on: March 22, 2015, 11:13:28 PM »
What price would get it under contract in under a month? What is it listed for?

I'm with you on showing your house being a huge pain.

I have it listed for 990k. Zillow showed my value at 1.2m and another agent did comps for my house and said that 1mil was a good comp. The problem is that where I live all the homes are custom homes on the hills. All the houses are not alike so its hard to get a good comp. A problem that I have is that even tough I am on the bottom of a cul de sac on a private street, I am the last house and I am right next to a busy street. So I think that will be an issue for re sale. Another thing is that I live on a hill and I am on the bottom of the hill. Some people might not like to be on such a steep hill. 

bizzy

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Re: Should I rent out my Large house
« Reply #5 on: March 22, 2015, 11:23:36 PM »
What is more stressful to you? Is it the commute or renting out the house?

If you are more stressed by the idea of renting the house out, it seems like you need to stay put. If the commute is killing you, then you need to start thinking of lowering the price. If you can deal with the commute then take your time and try to get as much as possible.

I never really thought about it like that. But, I think the idea of renting out the house will be more stressful then dealing with the commute I think. I think my ideal scenario would be for me to sell the house instead of renting it out. The only problem that I am facing is that I have an excellent renter for my other house and I would have to have been leave since I know he likes the place and he is taking good care of it. my first renter on the other hand was so bad, he is the reason why I am afraid to rent out a house again. He looked good on paper but once he moved in I could tell they were destroying the house. Until I asked him to leave a year later.


Bstarr

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Re: Should I rent out my Large house
« Reply #6 on: March 25, 2015, 12:11:16 PM »
One month isn't so long and we are just gearing up for the real estate season.  If you are well priced, it will sell. I wouldn't go making a fire sale when its probably just an issue of getting the right people through.  My last house took us two rounds on the market and we ended up selling at a loss after months on the market.  Real estate is just such a weird beast. Be patient. And yes, showing a house SUCKS.

bizzy

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Re: Should I rent out my Large house
« Reply #7 on: March 25, 2015, 07:07:23 PM »
One month isn't so long and we are just gearing up for the real estate season.  If you are well priced, it will sell. I wouldn't go making a fire sale when its probably just an issue of getting the right people through.  My last house took us two rounds on the market and we ended up selling at a loss after months on the market.  Real estate is just such a weird beast. Be patient. And yes, showing a house SUCKS.

I will probably keep in on the market until October and drop the price in a few months. Hopefully I can get the right people in there and sell it. But if I don't sell it I will consider renting it out. I was hoping I can get some feedback from people who have rented out a large home.