Keep to rent or sell and move on?
Background
Bought in 2022: 295k
Interest: 3.0 % (zero downpayment)
Escrow: Insurance and taxes
Current Balance: 281K
TOTAL: $1555/month
House comps in area: 320K
Rental comps in area: 2100-2200
Military, single income of ~100k. I don’t have much expenses (cars payed off, no other loans/debts).
I’m pretty sold on hiring a property manager at this point since I will be move across the country. I will not be buying at my next location. I’m aware of all the cost : 10% monthly, budget for repairs, vacancies, bad renters/managers etc
At my 3%, i feel like I’m throwing away a good investment…or am I just being naive in all of this. Thanks.
Edit: Its a new build in a new subdivision..I’m the first owner….should have mentioned this earlier
Rent or sell: Am I about to do something stupid?
byu/ConfusedSpaceCadet inMilitaryFinance
Posted by ConfusedSpaceCadet
6 Comments
I’d rent, especially with that rate
Rent it out. Where’s the debate?
Rent or youre shooting yourself in the foot.
That kind of rate will probably never come back to the market. Part of the reason inventory is very tight and most homeowners keep it as a rental when relocating duty stations.
You will still have access to use your VA again for another 100% financing if you decide to buy. Just have your loan officer calculate bonus entitlement because that formula requires county limits
I wouldn’t sell because of the 3% rate. Look at the tax assessor website to confirm what people paid for there homes in the last six months before believing Zillow, Trulia, Hotpad, etc…
Scout higher quality tenants and ask for 3 year lease terms, with flexibility to increase due to taxes changing each year.
Include in rental description, “discount for Senior Level Professionals working in the military and government, retired veterans and government employees that do not require home renovations for the property listed”.
The discount can be half/pay over time for the security deposit, pay a bill for a few months, lawn service for a few months.
You can use your VA Loan more than once at a time. As long as you initially make the purchased home your primary property, before getting orders to another area. After you get orders tell you insurance it’s a rental property.
You can do it. Just be aware, property managers tend to be pretty horrible