Author Topic: Selling bay area house vs holding on  (Read 1172 times)

nmalik

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Selling bay area house vs holding on
« on: August 17, 2019, 06:31:14 PM »
I have a house in the Bay area coastside and for personal reasons need to move  (locally). For this move I plan to  rent after which I will upgrade to a different property in ~1.5-2 years.

I am trying to decide what to do with my property. I've had a paper gain on it and think selling could be a good idea. At the same time, I dont want to lose out on potential property appreciation while staying locally and could rent the property out.

Would be interested in thoughts of selling and keeping money in the stock market or holding on to the property and renting it out

Sam

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Re: Selling bay area house vs holding on
« Reply #1 on: August 19, 2019, 08:47:34 AM »
I think it’s a good idea to try to hold on for as long as possible. Try to rent it out first and see if it covers all expenses and then some. Only after you cannot get a good renter and rent price should you consider selling.
Regards,

Sam

nmalik

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Re: Selling bay area house vs holding on
« Reply #2 on: August 19, 2019, 04:24:18 PM »
Interesting. But what are your thoughts on taking out the home equity and putting it in the stock market instead. Shouldn't the return on the market beat or equate the rise in appreciation/increase in home equity from renter over a 2 year period? (Mortgage rate is 3.625%)?

nmalik

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Re: Selling bay area house vs holding on
« Reply #3 on: August 19, 2019, 04:25:21 PM »
As added info, based on the current rents in the area, Ill likely break even on PITI, Insurance and property mgmt but wont make much monthly profit

couchfi

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Re: Selling bay area house vs holding on
« Reply #4 on: Today at 01:13:30 AM »
@nmalik what did you decide to do?

@Sam why do you think it's better to hold? I'm currently in the middle of this decision (except I have an SF condo rather than an house, and moving into a house), and to me selling and diversifying that cash in realestate crowdfunding and maybe a rental property or two in a low cost of living area with good cap rates seems like a better deal. Sure I lose 5-6% from selling costs, but I'll still lock in a gain now to reinvest and diversify.

Property prices are very high already in SF and I would barely break even on rents, having two large mortgages in this market during a down turn would wipe out any existing gains and probably force me to pay into the rental property when rents also drop during a recession. To keep a rental at this stage of the real estate cycle, I'd want to have a good amount of buffer for cash flow.