Should I rent out my brand new house?

Question

I relocated a few months ago cross country with my employer and have realized it was a mistake. I have been offered a fantastic job back where I came from and have decided to go back. However i was able to purchase my dream home where I am now and am torn if I should rent it or just sell it or hold onto it for a bit to see how well it appreciates. Any relevant opinions are welcome. Thank you.

Answer 1

I say NO TO RENTING IT OUT... first off it's not going to be your dream home if you not living your dreams in it!
Secondly, renters will not take care of your home the way you would.
You may be on the hook every few years for repairs.
Also,how will you be able to manage your rental property being out of town.?What will you do if you end up with a deadbeat tenant? Can you afford your other housing if you are left without the rental income for any length of time if have to evict a tenant?
Also the real estate market is cooling you may have to wait years for the home to gain significant appreciation to make holding onto it fruitful.
Lastly my advice is take lots of pictures, sell and vow to find another dream home that you can live out your dreams IN !

Answer 2

Well, financially it would make the best sense to offer a lease option at higher than market rate rent and higher than market rate selling price which you can generate alot of buyer interest in and lease it to them while collecting a (non-refunable) deposit of 3%-5% of the purchase price. You could use on a rainy day or save it to pay your mortgage on time if the rent is late but it 100% belongs to you to do with as you please.

Or you can simply rent it (if there is a pool of eligible renters in your area) and hold the house for five years so you can recoup the cost of selling it. If you got a good interest rate the difference between your mortgage/taxes and what you are renting it for should pay for a good property management company. For roughly 10% of the rent you will charge they will take the calls from the new tenant for you and collect rents and send notices. If you live in an area where few people could afford your market rent then I would say to sell it but as alast resort. Once you pay a realtor 6% of the property's value to sell it and misc. costs like paying the new buyers closing costs (smart idea to sell it faster) you could be out of $10,000-$15,000 really fast which could eat up your downpayment or put you in the hole. Both really suck. Drop me a line if you have any questions.

Answer 3

Wow i have been wanting to move from san diego because of the high cost of living. I say if you have your dream house HOLD ON TO IT. But If you love your hometown as much as I do, maybe you can rent the house for a while and move back, maybe you can get your dream house there too after a while.

Answer 4

Unless you believe that someday in the near future you would move back into the home, I would suggest you sell it. Having rental property in a location that is not convenient for you to keep an eye on could prove to be a problem.

Answer 5

No you shouldn't. I lived in a new house and we rented it when we came by the house it was trashed and dirty. When you rent a house the people that buy it think they have all the liberty to do whatever they want with the house so i would choose to sell it.

Answer 6

if you have the ability to manage it as a landlord/lady that may be a consideration.if anything goes wrong...it is your responsibility.will the rent just cover the mortgage?reliable tennants etc.all good things to think about.If you are across country..where is the dream?I say sell and replace it with a more manageable option.good luck!

Answer 7

you could use a realtor to handle rental for you...they charge, but they screen all applicants, and you would have money coming in from this.....

Answer 8

you should rent it out so then you have a steady income comin from that house that you be rentin