Looking for some outside opinion on the pros and cons of potentially renting out a home as oppose to selling.
Exceptional credit
No cc debit or any other debt outside of our cars and of course home.
2 cars: with manageable car payments
2.1% on our house with our mortgage payments roughly $1550.
We could sell at around $410,000 and profit $98,000 with the idea to pay off our cars and then put about $25,000 in a HYSA.
We are projected to go OCNUS and wouldn't take our cars, which I think makes us 2nd guess if we should apply the funds to pay them off or rent the home, pay cars off by the time our contract is up overseas and keep living life as intended.
The catch is that once we leave our home, we have no intent on returning, unless we absolutely had too.
How has your experience been with renting? Do you make good money or does it seem as though the profit doesn't outweight the risk of bad tenants and maintained fees?
TIA!
To rent or to sell
byu/Parking-Coconut-7736 inMilitaryFinance
Posted by Parking-Coconut-7736
3 Comments
I’d sell 100%. There might be more to the situation, but I’d never want to be a long distance landlord for a house I never plan to live in again.
As for the profit on after the sale, paying off the cars would depend on the interest rates. You might like having a little financial cushion while overseas to enjoy it and travel more.
What can you charge for rent?
What are your monthly costs of ownership?
I’ve been renting my home from my last duty station for almost 2 years. Cash flows $500/mo. Minimal issues (dish washer, garbage disposal, small crack in roof tile) until two days ago I get pictures that 2 trees were taken out by a storm. Going to cost me $900 to have them removed, and if the fire pit out back is damaged, $5k plus.
I say this because renting is inherently unpredictable. It’s up to you to run the numbers and decide if the acceptable level of risk is within your threshold. Oh, and get a property manager.