My husband and I are moving out of state and are debating selling or renting out the house. We live near a military base that has many foreign trainees. Our real estate broker has good things to say about the chance of renting, since young families come in often for one to three years. We have a good chance at making $500 to $600 extra a month on top of the mortgage being paid by rent money.
There would be specifics in the contract on credit checks, maintenance, pets, etc. that help ease my mind about being an absentee landlord. I’m just not 100 percent on renting when we could sell now and get a good profit toward a new house. Or should we keep it and take a chance?
— Via askedith.com
My standard advice is that your first real estate investment should be located within a half-hour drive of your own home. One investor I know says it should be “visible from my upstairs window.” Absentee landlords, especially inexperienced ones, are often asking for trouble.
It does sound as if your broker is ready to manage the property for you. That profit after rental income pays your mortgage — I assume that includes property taxes and insurance, but have you also subtracted management fees? Have you included a set-aside for repairs and maintenance? Could your family finances handle a failed water heater, a flooded basement or a two-month vacancy?
But look — I don’t know the real estate market there. Nor do I know your finances and whether you’re ready for a real estate investment. I’m afraid that in the end it’ll have to be your decision.
APG Property Management LLC
PH / FX 585-486-1906