All Forum Posts by: Matt J.

Thank you to everyone for your advice, really appreciate your help in thinking through this decision. Still not sure what to do, but it is helping me think through the options.

Loc R. ,
My current loan is assumable, but at 5% don't think any deal could be made...had to go look up what a wrap-around was. Current refi @3.6 I'm looking at is not assumable. I'm not sure I could line up a better investment as I seem to be a terrible investor...at least none of my investments seem to be doing well except for $200 I'm playing with on a peer to peer lending site.

I think I need to do a little more research on rental properties to confirm that $1100 is reasonable rent. If higher, it might work, but at or below this, I agree with Larry K, that its speculation on the real estate market going up. I think it will significantly improve in the next two years but not enough to sell for 205k. Low unemployment and strong growth in the local economy, good hip neighborhood popular for young couples makes me think there is a chance of recovering more money from the home.

Steven Hamilton II,
The 3 year rule (section 121) would only apply if I got more than the original purchase price from the sale of the property right? If I could I would happily sell at that point, otherwise I've been thinking more about the situation of having someone pay the mortgage off for me and keeping it long term as an investment. Just not sure how to make that work by getting the payment down. I don't have significant funds to pay down the principal. I can get a refi down to 3.6, but that still means a negative -220 cash flow...any suggestions?

I know the best move is probably to sell. I think I needed some confirmation or assurance of that given the huge loss this represents to me...close to year's salary in a job I don't like. I started adding up costs of the house and realized I'm looking at a $50k loss from closing, a refi, improvements, plus cost of selling. Being out of state would cause some headaches too. Selling would allow me to buy a home wherever I end up moving...instead of renting. And maybe I've learned enough lessons that I won't get burned next time around.

I've been reading and learning a bit here, but never posted. Hope you can offer some advice on what to do--to rent out my house or sell it.

I'm expecting to move out of state (Utah) in the next 3-4 months, and don't think I will be returning anytime soon. I own a single family home, two bed/one bath that I bought in 2006 for $205,000. The mortgage is down to 151,000 at 5% on a 30 year. Its in a good neighborhood close to downtown, could probably get about 1100/mo for rent. Currently paying $990 for mortgage, tax, and insurance. No HOA or any other major fees. Just appraised at $175,000, which seems about right.

Market seems to be going up here, in the last few months nice houses in the area are selling quickly. No foreclosures in the area. Rental market is pretty strong.

So do I take a $30k loss and sell, or hang a couple years on until the market returns? If I do keep it, I can refinance now down to 3.625.

I've heard about the 50% rule...so
1100 (rent)/2 = 550
550-847(p+i) = -297 (or with at 3.625% loan 550-770(p+i+pmi) = - 220)

Would indicate I should just sell from a business standpoint...is this about right? The rule seems very conservative.