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Updated about 8 years ago, 10/20/2016
House in Fayetteville, NC
I rented out my house a few years ago after transferring out of the area. Tenants moving next month. I'm trying to decide whether to rent it out again or sell it. How is the local market right now? I really don't want the house to sit empty so whichever would be the fastest. Any advice from a local investor would be very appreciated.
How much equity do you have in it? Selling it without any equity wouldn't really Benefit you. Have your agency start looking for renters. If your strapped for cash maybe lower the rent a little to encourage it to fill.
I didn't use a property manager. The zestimate and trulia estimate is around $150,000 and I owe $108,000. The previous rent was $1,040. I'm stationed in Oak Harbor, WA now and don't have a reason to go to NC anytime soon. If I do rent it out, I'd like to use a property manager. I have cash so I'm flexible as far as any repairs and upgrades. If I sell it, I'd like to use a broker who can get help me navigate to get the best return.
If I where in your shoes I would keep it. You are already 1/3 of the way payed off on it. You can refinance the home at any time and use the money to put down on other homes. Property managers normally charge a percent of the rent but it's worth it knowing the home is completely taken care of. It may be a hassle to you being so far away but don't think of it as a hassle, its an investment.
If you are sticking with a property manager, they should be able to give you some feedback about the local area. One way that I have determined volatility in the rental market is to pull up the local property manager's websites and track property for a while. Specifically, you could narrow the searches down to similar properties as yours. That has worked for me.
William, there are some great replies on here. First, you want to figure out what your goals are, that will help determine what decision to make. Again, there are many different routes you can take.
As for the Zillow estimate, don't hold your breath. It's a range using only a few factors.
I can help determine a value, and create a plan if you need. Let me know.
Adam
I currently have it rented for $1200 a month and I pay a manager $100.
With the turnover at Fort Bragg you shouldn't have a problem renting it. Where in Fayetteville is it? It's not like that place is getting any smaller.
keep it. cost to sell would eat most of your equity and then you'll (likely) pay taxes on the difference, AND you lose a cash flowing asset.
I have a RIDICULOUSLY good property manager if you need a recommendation. the market for rentals here is very good for SFR.
yeah, I'm keeping it. It's in the Jack Britt neighborhood (Williamsburg Plantation).
Hold it! The Fayetteville market is recovering. We've lost 5 months of inventory over the last few years (from 13 months to just under 8 now)...You are going to see it appreciate well over the next couple years.
I am a local investor in Fayetteville, and this town is definitely a buy and hold type of environment. I have seen tons of houses just sit on the market and waste away (buyers advantage). Most people are buying up the new construction (senior military). There is a ton of military rotating in and out, that only want to rent and not buy. Nothing against Fayetteville but most people don't want to be there any longer then they have to (huge renters market).
Originally posted by @Alexander Felice:
keep it. cost to sell would eat most of your equity and then you'll (likely) pay taxes on the difference, AND you lose a cash flowing asset.
I have a RIDICULOUSLY good property manager if you need a recommendation. the market for rentals here is very good for SFR.
Hi @Alexander Felice I am interested in your property manager recommendation in the Fayetteville, NC area. Thank you!
Alexander Felice I'm also interested in hearing about what property manager you're using!!
Hi @William Sumner I'd recommend putting a quick listing on Craigslist & Zillow Rental Manager and see how much interest you get. If the phone is ringing off the hook, you know that you can re-rent it quickly. Your PM could obviously do this for you too, but it is the best way to test the market. I am a huge proponent of holding on to properties if oyu can keep them rented. It is ideal to have someone paying down your asset.