To Sell or to Hold (previous house in South County)

H

happycat

Member
Hi everyone,
We moved to Irvine last year and rented our previous house at South Orange County. Now we need to make decision whether to continue renting it out or to sell it, and we'd like to hear your opinion. 

We bought the house at a high price (before the bubble) , so we won't be making profit after the remodeling and brokers' fee if we sell now.  With the high price tag in Irvine and FCBs driving more people looking into surrounding cities in south county, we were told to hold it if we don't have to sell it now.  But now summer is coming, the stock is at all time high and the interest rate is inching up, should we sell it now? 
Btw, we won't be making money if we keep renting it out either :(, after the mortgage and hoa, etc.  The only difference btw Sell it Now and Renting it out for a couple of more years would be the hopeful property appreciation. What would you suggest?

Thanks much! 
 
If you can comfortably afford both homes than I don't really see a reason to sell. Especially if it's in a good location and easy to rent (with A or B+ -grade tenants). I don't know your income, but you're likely to be getting some tax advantages with this rental property as well.
 
You mentioned etc. for the rental costs. So I have a few questions for you.
1. Do you use an agent to rent out your rental? If so, consider finding the tenant your self.
2. Do you use a property management to manage your rental? If so, consider managing the rental your self.
3. Have you consider raising the rent? (Have you check the rent prices in your area?)
4. Is your rental a condo or a house?
5. Is your property in a good school district?


happycat said:
Hi everyone,
We moved to Irvine last year and rented our previous house at South Orange County. Now we need to make decision whether to continue renting it out or to sell it, and we'd like to hear your opinion. 

We bought the house at a high price (before the bubble) , so we won't be making profit after the remodeling and brokers' fee if we sell now.  With the high price tag in Irvine and FCBs driving more people looking into surrounding cities in south county, we were told to hold it if we don't have to sell it now.  But now summer is coming, the stock is at all time high and the interest rate is inching up, should we sell it now? 
Btw, we won't be making money if we keep renting it out either :(, after the mortgage and hoa, etc.  The only difference btw Sell it Now and Renting it out for a couple of more years would be the hopeful property appreciation. What would you suggest?

Thanks much!
Click to expand...
 
1. Do you use an agent to rent out your rental? If so, consider finding the tenant your self.
We used an agent.
2. Do you use a property management to manage your rental? If so, consider managing the rental your self.
We managed the rental ourselves.
3. Have you consider raising the rent? (Have you check the rent prices in your area?)
Yes, if we were to continue renting, we are planning to raise the rent.
4. Is your rental a condo or a house?
It's a 4 bdrm house.
5. Is your property in a good school district?
Yes, in a very good school district.
 
I think it depends on how much of your net worth is in real estate vs stocks/bonds/cash.

If most of your worth is in your two homes, I would lean toward selling just to be more diversified and liquid. Housing is very illiquid. If there is some sort of crash, good luck selling to raise cash.

I also would much rather own long term in Irvine vs south county during a downturn.
 
Rtlguru said:
I also would much rather own long term in Irvine vs south county during a downturn.
Click to expand...
Exactly why we once considered South County but ended up buying in Irvine.  Safer place to park your $$ in a home.
 
1) Do you have a plan with the equity from the old property if you do sell?  How much equity are we talking about
2) What's the mortgage rate on the investment property
3) What's the actual montly net after expenses?  With and without principle pay down?
4) What's the condition of the property?  Will it require a lot of maintenance?
5) How easy was it to rent out the property? 

These would be the questions I would ask myself when making a decision.  I had to make a similar decision 5 years ago.
 
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