For those moving up and buying bigger - will you rent out your current place?

[usctrojancpa]

If you had the net profit from the prospective sale of this house lying in a savings account, would you use that cash to buy this house as an investment property?

If you had x amount invested in bonds that pays you monthly dividends in the form of increasing your x over time, and it costs you anywhere between 6-12% (based on LTV) to cashout, would you?

I would cash out because I don't buy bonds. Maybe some day...

I'm guessing somewhere in this "bond" point, he was making a point about the transnational costs of exiting the real estate? That said, those transnational costs exist at some point (whether you exit now or 50 years from now).

Right on. I was pointing to transaction costs.

Money spent selling today is higher % of your equity. Money spent selling in 5 or 10 years would be smaller % of your equity. And, in the process the selling costs you saved today potentially appreciated over that period.

I am eagerly waiting for Uberization of real estate transactions. It does not make any sense to me that it costs so much to sell in this day and age of computerization. We can already see that Redfin is putting downward pressure on selling costs.

I've been doing rebates for clients before Redfin even existed....my own fault for not starting a business like Redfin.  Anyhow, you are completely right....the current commission structure model for agents is as out dated as beta and the steam engine.  It should definitely be more on a work/effort model or at least better align the interests of the clients with the clients. 

 

[paydawg]

Does anyone have a nice grandma that would like to move in?

The bedroom would need to be downstairs then

 

[panda]

Acf,

Your monthly cash flow will be 109 without accounting for any Capex or vacancy. What was your purchase price, down payment, and what is the condo's current market value? With this information I can give you a thorough analysis accounting for tax benefits as well as appreciation potential and opportunity costs.

One of the challenges you will have is a smaller appliances pools of either a single person or a senior.

Thanks for the good responses all.

There is an exact comp of my place that rents out for $2100 a month. My place is in amazing condition in a very quiet location with much nicer upgrades, shutters and hardwood floors throughout.

My mortgage is $1105, HOA's are $208, Property tax is $618 a month. Home insurance is about $60/month.

As previously stated, it's a 1 bed, 1.5 bath, 2 floor detatched condo with an attached garage in Woodbury.

I heard that a 1 bed 531 sq ft apt in Los Olivos is already $1900.

I may be able to find a potential tenant through my work. Always lots of new hires.