Ask Me Help Desk - Should I sell and Rent?

When I was young with big eyes and vision of granduer and right after getting married we bought a 5,000 sq ft house. Fast forward 10 years later and 2 kids later I am beyond tired of taking care of this huge house. We just want something half the size with half the utility bills. I do not know if I want to move out of the state or stay in the same town. I was thinking of selling the house if I can get the price I want and then renting a townhouse for 1 or 2 years until I figure it out. Plus I want to put more money in some debt and other investments. Do you think this would be wise if I can get the asking price I want. This way I can save money and figure out where I want to go... I checked out renting and its half of my month mortgage that I pay now. I know I would not have a property write off, thoughts?

Sell if you can get the asking price. If you can get another place and rent then rent for awhile until you decide. If you move out of state though you maybe better off not renting cause if something needs fixed or there are other problems it can be hard to deal with from another state unless you know and trust somebody that can take care of things.
My boyfriend is planning on renting for a few months and then selling rather than just selling for $60,000. Or whatever he can get. That way he has some money before selling.

If you can get your price, sure sell. But with that, most properties are going for about 3/4 or less of the value of the same property 3 years ago. In many cases a lot less.

On my last house sale, I was just lucky, after a year on the market to get enough to cover the mortgage.

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Originally Posted by Fr_Chuck

If you can get your price, sure sell. But with that, most properties are going for about 3/4 or less of the value of the same property 3 years ago. In many cases alot less.

On my last house sale, I was just lucky, after a year on the market to get enough to cover the mortage.

I would def need to cover the mortgage, I hear you. I forgot to ask how much down I would need on my next house? I bought my last house with 20% down and that was before all the mortgage problems that are going on now. I do not want to pay more than 400k for my next house. 350k would be even better but want some wriggle room. I heard that its harder now to get a mortgage, we have good credit but not sure if the rules have changed.
Thoughts? I would be going into my next house with 0 debt if we did it this way.l

I would sell if possible.When you rent, you are responsible for damages and repairs.Remember that people renting almost never treat it as their own, therefore they have a tendency to destroy things that you would have to shell out money to repair. I would sell.

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Originally Posted by Bowling

I would def need to cover the mortgage, I hear ya. I forgot to ask how much down I would need on my next house?? I bought my last house with 20% down and that was before all the mortgage problems that are going on now. I do not want to pay more than 400k for my next house. 350k would be even better but want some wriggle room. I heard that its harder now to get a mortgage, we have good credit but not sure if the rules have changed.
Thoughts?? I would be going into my next house with 0 debt if we did it this way.l

If you have good credit you should still be able to get into a house with less that 20% down. Things have tightened up a little on prime mortgages (normal houses - buyers with good credit). It's the sub-prime market that is really reeling. I know lenders who still advertise 0% down, but realistically if you have 5 - 10% you should have no trouble.

I've had several tenants over the years who were simply downsizing. As long as you're realistic about renting vs. owning your own home and go into it knowing it's a temporary means to an end, I think it's a fine plan. Even in nice properties things aren't always exactly up to home owner standards. Except for a very, very few people I still advocate for home ownership over the long haul - which is your plan.