All Forum Posts by: Tish Simmons

@Tish Simmons, Awesome that you have paid off the mortgage and are looking into rental strategies. Sounds like you could have some sentimental value in the house that may lead you to keep it. 

I am a director for a management company in Atlanta, so we are VERY familiar with Decatur properties and some of the challenges they bring. Certain areas of Decatur are easy, while some are not.  The county is also tough to deal with when things go south renting wise, so keep that in mind.

Please feel free to reach out to me with any questions ! 

 I just saw your message,  and did, thanks!

If you are going to have to take out a mortgage for the new home that has $3500 a month mortgage payments and the rental won't cover that, is it worth keeping?  Could you sell it and use some of the money to buy a rental as well as a primary home?  Over 30 years, the price of the home has probably gone up, so you also need to think of capital gains implications.  If you have it as a rental (or don't live in it for 2 or 3 of the last 5 years of ownership), the cap gains on sale may make it better to sell now.

@Tish Simmons, Yes, it's true. Many investors will advocate holding onto properties, however, it entirely depends on your investment goals and financial position. Hypothetically, if the Decatur home could not be rented, would you still fulfill monthly payments on your new primary residence? If you're solely relying on rental income to cover your monthly mortgage without any other reserves, that's a bit risky. Moreover, since the home is located in the 30035 zip, you'll want to do the bare minimum to get it rent-ready. Do you plan to self-manage? 

Below are a few examples of recent rentals to give you an idea: 

https://www.zillow.com/homedetails/2240-Newgate-Dr-Decatur-G...

https://www.zillow.com/homedetails/3895-Emerald-Falls-Ct-Dec...

https://www.zillow.com/homedetails/1721-Lee-St-Decatur-GA-30...