Opinion: Should We Sell our Home or Just Rent it Out for a Year?
Hey, thanks in advance for your opinions/advice/experiences. I have a high-end home in NC that we did major, major additions/renovations to in 2007 (brilliant, I know; it was like buying "new" at the height of the market). We really thought this was going to be the home our grandkids would come to visit. (We currently have 4 children, ages 7-15) So, we really stretched. Then, 2009 rolls around and my husband was laid-off. Luckily, he got other employment, but he was essentially underemployed for the last 2 years. He got a new job in FL that is much better paying. The company gave us a lump sum for moving costs, but they will not purchase our home. Our home appraised for $850,000 in 2008 which was not the height of the market. We currently have it on the market for $795,000 with some buyer interest, but not a lot. We would need $760,000 to just break even. We plan to rent in FL, anyway until we get used to the area. Should we just rent our NC home out? Our NC neighborhood has the best elementary school and high school in the area. It is a very desirable neighborhood and we are made to feel that it would be pretty easy to get renters to pay about 70-75% of our mortgage. I get that the prices of houses are not likely to go up and may even go down, but we would have another year of paying our mortgage down and my husband gets a guaranteed bonus in December, so it would be easier to offer the house at a bargain price next spring. Also, we would have the mortgage interest write off for our tax purposes. The problem is with renting, is that we don't have family here in NC that could look over things, but we would use a property manager. Also, I am nervous as to how well renters would take care of our home. So any thoughts or experiences would be appreciated.