Anonymous
01/04/2023 12:25
Subject: Re:Rent or sell?
Anonymous wrote:Anonymous wrote:It's not your decision period
This is such a weird comment, and someone keeps making it in every thread. I wonder if this person goes home and sits in silence with their family because they never share ideas or think out loud or try to help each other. And if someone says "Larla, I like your sweater," they say "It's not your business what I wear!"
Anyway, OP - we have a rental property, and our main issue is that it became too big of a burden as our jobs got busier and we had kids. If you have the time and inclination to maintain it yourself, then that is a plus. But it is definitely a pain in the butt. Also you will be paying taxes on the rental income, not just all the mess with depreciation and capital gains. Keep track of any passive losses because that can balance the depreciation when you sell.
I agree with the PP. it’s not her decision at all. If I had a gf and saw this post on here about my house, I’d be weirded out. Unless marriage is in the cards, then it’s truly up to him.
Anonymous
01/04/2023 01:43
Subject: Rent or sell?
Anonymous wrote:Boyfriend status means you will not get anything if you guys breakup. Unless the house has your name on it. That just complicate things more. How serious is the relationship? I mean a marriage is not guaranteed but you do get something if you are a spouse.
If he is smart, he will stay single. She is already meddling in his finances.
Anonymous
01/03/2023 21:57
Subject: Rent or sell?
Boyfriend status means you will not get anything if you guys breakup. Unless the house has your name on it. That just complicate things more. How serious is the relationship? I mean a marriage is not guaranteed but you do get something if you are a spouse.
Anonymous
01/03/2023 10:18
Subject: Rent or sell?
I'd keep it and rent it out.
Anonymous
01/03/2023 10:17
Subject: Rent or sell?
OP, do you own? If so, what is your property type (TH, SFH, or Condo)?
Anonymous
01/03/2023 09:59
Subject: Rent or sell?
What's the interest rate? Where is it?
I'd probably keep it. He won't have much equity if he sells.
I'd probably keep it. He won't have much equity if he sells.
Anonymous
01/03/2023 09:48
Subject: Re:Rent or sell?
OP, you say “it probably won’t go much higher”.
Why do you think that? It’s already gone way up and, in most cases, real estate appreciates over time. Maybe not every year, but over time almost always.
Why do you think that? It’s already gone way up and, in most cases, real estate appreciates over time. Maybe not every year, but over time almost always.
Anonymous
01/03/2023 09:20
Subject: Rent or sell?
Keep it and rent it out. After 2 or 3 years of being a landlord, you will know if it works for you.
My DH had a condo that has tripled in value, is paid off and is a rental we will never part with. It's in a great building, excellent location and is easy to rent out. We have a great asset on our hands with the condo and are happy we have it.
My DH had a condo that has tripled in value, is paid off and is a rental we will never part with. It's in a great building, excellent location and is easy to rent out. We have a great asset on our hands with the condo and are happy we have it.
Anonymous
01/03/2023 00:07
Subject: Re:Rent or sell?
Another option might be to rent it for the next 3 years because he will still be able to sell it and take the gains tax free since he will have lived there for 2 out of the last 5 years.
Then he can sell it and not pay capital gains.
Then he can sell it and not pay capital gains.
Anonymous
01/02/2023 16:27
Subject: Re:Rent or sell?
Anonymous wrote:It's not your decision period
This is such a weird comment, and someone keeps making it in every thread. I wonder if this person goes home and sits in silence with their family because they never share ideas or think out loud or try to help each other. And if someone says "Larla, I like your sweater," they say "It's not your business what I wear!"
Anyway, OP - we have a rental property, and our main issue is that it became too big of a burden as our jobs got busier and we had kids. If you have the time and inclination to maintain it yourself, then that is a plus. But it is definitely a pain in the butt. Also you will be paying taxes on the rental income, not just all the mess with depreciation and capital gains. Keep track of any passive losses because that can balance the depreciation when you sell.
Anonymous
01/02/2023 15:17
Subject: Rent or sell?
How old is the th and where is it?
Anonymous
01/02/2023 14:41
Subject: Re:Rent or sell?
The market being "awful" means that it is likely a good time to invest. Those numbers you are providing don't tell the whole story because those aren't the only costs associated with owning a rental property. So I would figure that out first.
Anonymous
01/02/2023 13:04
Subject: Rent or sell?
Anonymous wrote:My boyfriend will be moving in with me soon and we’re debating whether to rent out or sell his townhouse. He paid $250k for it as a divorce buyout and his mortgage balance is about $200k. His payment is around $1300/month all inclusive (PITA). It’s worth about $500k at this point but probably won’t got much higher. We’re not sure what the best financial decision would be regarding keeping it or renting it.
Rental income would be around $2k per month or maybe a bit more. He’s handy so he can fix anything that breaks. If we go this route he’d use the extra income to pay down the mortgage with the hope of having the house paid off by retirement in about 11 years. The main downside I see to this plan is the tax burden when he sells. He’ll lose his primary residence deduction, would have to depreciate then recapture at the sale and would have to pay capital gains. But on the flip side if he still owns the townhouse when his kids get out of college (if they decide to return to the area) they could always rent it from him or he could just let them live there and pay expenses.
The other option is to sell the townhouse and invest the proceeds. Market is so awful now that I’d be hesitant to do that but again this is money that wouldn’t be touched until retirement so it has time to grow.
Is there something else I haven’t thought of regarding pros and cons of either choice?
Real estate is still high. I'd say get rid of it. He'll make about $250K. A bond yielding 4% gives you 10K/year or $833/month, more than the $700 you'd make renting, without the hassle. Of course, you could (and should) invest in the market if that cashflow is not necessary. This is the best time to invest. Spread your investment over several months to DCA.
Anonymous
01/02/2023 11:55
Subject: Re:Rent or sell?
It's not your decision period
Anonymous
01/02/2023 11:49
Subject: Rent or sell?
My boyfriend will be moving in with me soon and we’re debating whether to rent out or sell his townhouse. He paid $250k for it as a divorce buyout and his mortgage balance is about $200k. His payment is around $1300/month all inclusive (PITA). It’s worth about $500k at this point but probably won’t got much higher. We’re not sure what the best financial decision would be regarding keeping it or renting it.
Rental income would be around $2k per month or maybe a bit more. He’s handy so he can fix anything that breaks. If we go this route he’d use the extra income to pay down the mortgage with the hope of having the house paid off by retirement in about 11 years. The main downside I see to this plan is the tax burden when he sells. He’ll lose his primary residence deduction, would have to depreciate then recapture at the sale and would have to pay capital gains. But on the flip side if he still owns the townhouse when his kids get out of college (if they decide to return to the area) they could always rent it from him or he could just let them live there and pay expenses.
The other option is to sell the townhouse and invest the proceeds. Market is so awful now that I’d be hesitant to do that but again this is money that wouldn’t be touched until retirement so it has time to grow.
Is there something else I haven’t thought of regarding pros and cons of either choice?
Rental income would be around $2k per month or maybe a bit more. He’s handy so he can fix anything that breaks. If we go this route he’d use the extra income to pay down the mortgage with the hope of having the house paid off by retirement in about 11 years. The main downside I see to this plan is the tax burden when he sells. He’ll lose his primary residence deduction, would have to depreciate then recapture at the sale and would have to pay capital gains. But on the flip side if he still owns the townhouse when his kids get out of college (if they decide to return to the area) they could always rent it from him or he could just let them live there and pay expenses.
The other option is to sell the townhouse and invest the proceeds. Market is so awful now that I’d be hesitant to do that but again this is money that wouldn’t be touched until retirement so it has time to grow.
Is there something else I haven’t thought of regarding pros and cons of either choice?