Help! Rent vs Sell

[Rose Frantz]

I purchased a 2 bed/2 bath condo in a popular high end area for 200K and renovated it (20K). My relator thinks I can sell it for $270. I initially planned to rent it out for a few yrs but I've had it available for rent for 2 months and am just not finding a good candidate. I had about 10 applications with awful backgrounds/ credit checks/ etc. Maybe 3 were good and one applied and is ready to move in. Now in considering selling because I don't want to run into the same problem next year and the year after. The time between tenants, cost of new paint anything that needs fixed will add up. I was also thinking if I rent it for a yr and sell it next year it will not be worth as much since everything is newly renovated now. Anyone have any input on this? I really appreciate the help!

[Ryan Muska]

If you are going to sell a home, wait until January-April. That time of year is statistically the hottest market. Right now is the most dead time of year to list a home. Also, remember that selling a home is going to cost you roughly ~10% of the sales price. If you do not sell it for at least $245k you may not be breaking even. 

Next year, everyone is anticipating that interest rates will be lower (election year, possible recession, etc.). Lower interest rates means higher home prices. If you hold it until interest rates are back in the 6s, people may be more inclined to purchase at a higher price. 

Don't just listen blindly to your realtor, or me, or anyone! Do your own research. How much are 2bd/2ba condos selling for right now? Look up the comparables and see if this realtor is just tugging your chain so they can sell your home and stay-afloat. 

Just some food for thought.