Relocating to another state: Should I sell my IL townhouse or keep it?

Question

I am relocating to Houston next month for a new position with my employer. My current townhome has a 10 yr mortgage, which I would have 5 more years to pay on it. I am trying to decide if I should hold on to it for 5 years and try to rent it out, or just sell it. I live in IL in the Naperville district, so its a nice area. But I am worried about all of the new home constructions around me and since it is a buyer market now, will it be harder to rent out?I have never rented out before and do not know what to do. I have been approved for a townhome in TX based on keeping the 1st home and financially, I could pay for both, but was not sure if that is a wise move. Maybe renting in TX would be better. I would prefer to at least have some rent coming in for the IL home to pay part of the 1st mortgage if I should keep it. What do you think?

Answer 1

First off great move on a ten year mortgage. you are one of the few that truly are in good position with there house.

If you could swing a renter that covers the IL. mortgage do so, even if you just break even or make just a little just save it for repairers taxes etc. In five years you have a cash cow, or golden goose, Great job there.

Now for the Move the Houston may be you should rent till you get to know the area, also hang low for the price drops, I think that for the most part the home price are going to drop throw the floor, the reason for this is the dishonest buying selling practice used by Realtors. This is out lines on this web site and I think that the maket is relay over inflated due to bad information.
http://www.breakingbubble.com/index.htm

Also just hanging in TX. you may not like it there and move back or some were els, why get locked in till you know you like it there are want to plant some roots.

Best of luck

Answer 2

I feel you should hold sell the rental property or wait till the prices come back to normal then sell. Remember even if you have a property management company you are still liable financially. It really depends if you feel the townhouse is in a good neighborhood and will appreciate in years to come. If so then it's a definite keeper; you will be building equity with little to no money out of pocket. My friend moved to GA from NY. He left his house in NY to rent; but it's in a low end neighborhood and will take years before he will see gains. During the boom his house he bought for 190k (early 2004) had offers for 210k ; a year and a half later (mid 2005); while other neighborhoods were appreciating at 25-35% per year. He is now paying a few hundred dollars a month to keep the place going and has a high turnover of tenants since its in such a low end neighborhood with a bad school district.

Answer 3

Owning rental property can be a challenge even if you live nearby. If you are out of town, it can be a real headache. Of course, you can mitigate that by hiring an experienced, reputable property manager to handle the management for you, but that will cost you 10% of your rental revenue. I would recommend selling the house and buying one in Houston. If property values increase in the years ahead, you will capture that gain by owning in Houston. If you have to sell at a low price in Naperville because of the current soft market, you will also have an opportunity to get a good deal in Houston for the same reason. The only negative about my suggestion is that you won't have time to get to know Houston and decide where you want to live. However, you can spend some time there before you move down and learn the neighborhoods, ask advice of the locals, and make an informed decision. Good luck!

Answer 4

I propose you keep wherein you're, you appear to adore it, and the challange with make you more potent. You did not state how lengthy you may have lived for your new state, however matters are constantly hard in the beginning. You will meet new peers, take a look at your church, or signal up for a few categories at night time tuition. That could also be tough, being a unmarried father or mother, but when you'll get a little one sitter, with the intention to aid you. Besides assembly new humans, while you get extra schooling, it's going to upgrade your process customers and develop your revenue. As you have already got a role, ask your manager, if they may be able to suggest any direction so that you can take, to upgrade your possibilities for merchandising. Don't quit now, you may have already made the important soar of leaving residence, proving you may have what it takes, so simply persist with your weapons. It will all determine for you. Good success, along with your long run plans.

Answer 5

Yes, yes, yes, keep your present home!! Especially since, if push comes to shove, you can afford that mortgage as well as where you are relocating. With a decision like yours to make, I personally would pray for direction.

Also, if you like your employer so much that you are willing to relocate, you can't loose with buying a home in Houston. And don't let the falling home prices shy you away from buying. Why? Because real estate will rise again. Small story. In the late 1970's to early 1980's, home values started to rise and rise and rise. By the late 1980's, they started to go down. A couple friend of mine purchased their 1st real home in 1988 for $80,000 (they moved from a trailer). In 2003, they sold their first home for over $168,000. Because they bought their home when prices had fallen and sold it when prices rose again, they doubled their initial investment. So I believe that is the trend here in America. When things go low, buy what you can afford. Hold on to it as long as you can and then sell (only if you want to), when they rise again. Because they will rise again! (And the cost of living in Texas is a lot more than here in Louisiana).

You seem very smart and intelligent to even seek advice before you make a move. So God bless you on your new move and your decision making! Wishing you the best!!!

Answer 6

I would hang on to it as long as you could. Value of homes and property will be back on the rise.