Sell or Rent

**kubmg** · 04-05-2010, 10:50 AM

Here is the situation...
We have an opportunity to move out of State and live close to family. The job offer is most likely not going to happen again. A few close family members are getting ill, our children don't know many of them (they are 8 & 9).

Current job situation is this. I was put in a situation where I had to find a job due to being put on the layoff list. Fortunately I found one. Unfortunately it's 60 miles away. The drive sucks. I really cannot stand it. I'm doing very well here however because I wasn't looking to change jobs at the time, I don't consider it long-term.

Having said that, I look at our moment in so many different ways it's been difficult coming up with a decision. If we didn't have our home, it's a no brainer...we move. Unfortunately the realty is we have a home. Two years into the mortgage. It's not a great market. I doubt we would get what we owe. We can live with family if we move. We can make the mortgage payment during that time.

I realize that most of what Dave says is pretty hard-lined. But I'm willing to push our debt free living off a few months if it can mean us getting back close to family because in the end we will get there. That's important to us. However, I'm concerned that the home situation could drag for several months if not years.

Thoughts?

Outside of the mortgage, we are nearly debt free (4 months away).

**Greebo** · 04-05-2010, 10:55 AM

You don't consider what long term? The current job? Or the commute?

What market are you in where you might be trying to sell this house vs. rent?

How much do you know about the legal obligations and risks of being a landlord?

What is the rental market like in your area?

What do you owe and what is the house worth?

**kubmg** · 04-05-2010, 11:08 AM

You don't consider what long term? The current job? Or the commute?
I'm not sure I follow. I don't consider the current job long-term and I hate the commute. I just see dollars signs fly off our vehicles driving 120 / day to work. Not to mention the mood it puts me in as well as the additional time spent away from family.
What market are you in where you might be trying to sell this house vs. rent?
Rather not disclose that yet (as I'm still mulling the offer) but it's not a great market (homes are taking longer to sell but are getting pretty close to asking price).
How much do you know about the legal obligations and risks of being a landlord?
Considered renting. Rental market is pretty good here. Unfortunately we would not get anywhere close to our mortgage in rent (my thoughts are we could get some rent but still owe 500-600 / month to cover the mortgage). Renting is a big risk (we couldn't afford for someone not to pay, especially if we rented as well). Bigger than selling I would think.

What do you owe and what is the house worth?
I think we could possibly get what we owe. But with Realtor expenses we wouldn't break even. I'm willing to cover those costs with a small loan. We would be nearly debt free and could pay the loan off very quickly. In fact, this is where I'm leaning now...if it were to all play out that way.

**StanleyJohnson** · 04-05-2010, 11:14 AM

One disadvantage with renting is the wear and tear on your house.
If it's an old fixer upper that's one thing. If your house is in good shape you could be spending big bucks to get your house back up to selling condition.

**kubmg** · 04-05-2010, 11:19 AM

It's an older home but it's in GREAT shape. New roof, new windows, new appliances, new outside and inside paint. 2 year old basement finish.

**Greebo** · 04-05-2010, 11:34 AM

Originally Posted by kubmg

You don't consider what long term? The current job? Or the commute?
I'm not sure I follow. I don't consider the current job long-term and I hate the commute. I just see dollars signs fly off our vehicles driving 120 / day to work. Not to mention the mood it puts me in as well as the additional time spent away from family.

If the job isn't going to be long term, then moving doesn't make sense to me.

What about renting a cheap apartment close to work and staying there during the week, going home on weekends, for the duration?

What market are you in where you might be trying to sell this house vs. rent?
Rather not disclose that yet (as I'm still mulling the offer) but it's not a great market (homes are taking longer to sell but are getting pretty close to asking price).

Just trying to get a sense for how bad your particular market is suffering. If you're in LA, my prediction will be different than if you're in Pittsburgh, for example.

How much do you know about the legal obligations and risks of being a landlord?
Considered renting. Rental market is pretty good here. Unfortunately we would not get anywhere close to our mortgage in rent (my thoughts are we could get some rent but still owe 500-600 / month to cover the mortgage). Renting is a big risk (we couldn't afford for someone not to pay, especially if we rented as well). Bigger than selling I would think.

If the job is short term? Keep the house. Rent a $400-$500/month apartment/fleabag.

**Wendy99** · 04-05-2010, 11:35 AM

Originally Posted by StanleyJohnson

One disadvantage with renting is the wear and tear on your house.
If it's an old fixer upper that's one thing. If your house is in good shape you could be spending big bucks to get your house back up to selling condition.

I agree with this.

**IntlMom** · 04-05-2010, 11:52 AM

Greebo, I am gathering that the CURRENT job is short term, (the one she found after being layed off, that she hates the commute to), not the one that has been offered. If that's the case, what does that do to the scenario?

**Greebo** · 04-05-2010, 12:00 PM

Originally Posted by IntlMom

Greebo, I am gathering that the CURRENT job is short term, (the one she found after being layed off, that she hates the commute to), not the one that has been offered. If that's the case, what does that do to the scenario?

AHH, I was equating the "offer" with the long-arsed commute. My mistake!

Hmm.

Still would not rent. Wouldn't want to be a long distance landlord if I could help it - esp. not and lose money at it.

I think you pay for an appraisal - not a real estate agent but a licensed appraiser - to get a better lock on your home's real value, and current comps (recent sales).

If you can stock pile money to pay the closing costs, that's better than borrowing the money to do so. This *is* the DR forum - which means NO NEW DEBT!

But technically you're trading a huge mortgage for small amount of closing cost debt... this might be a "Call the man" question.

**mateosbaby** · 04-05-2010, 12:17 PM

We just did this, sort of. We didn't have a job offer, but we sold our house and moved back by family. It was a huge risk, but we definitely had God on our side, because my husband found a job almost immediately. Family is way more important than money, any day, hands down. If I were you, I would take that job offer, move in with family, and try to sell your house long-distance, rather than trying to rent it. (We are also staying with family while we find a new place of our own.)

**kubmg** · 04-05-2010, 12:35 PM

mateosbaby - Thanks for your thoughts. That is where we are leaning.

IntlMom - that is correct. I took this job because I was fortunate to find another one while in line to be laid off. The offer would be more stable, long term job in a great market.

Like I said, if it weren't for the house, we would be gone. It's just the risk of putting it up for sale, etc etc...as outlined below.