Renting vs. Selling our house

[be12hunt]

Are you looking for a second job at the moment?

If so, is renting your old house the most value/hr. you can make at a second job?

Not necessarily looking for a second job but don't mind working a little extra on it. Plus I don't expect to spend more than a few hours per week dealing with it.

[be12hunt]

I'm a landlord right now and not enjoying it. Constantly having to come up with funds to make repairs (not an old home either) gets old. We are itching for the opportunity to sell and let it be somebody else's problem.

Is it the tenants being picky or causing problems or is it just normal wear and tear?

[Matt_C]

Yeah the market is definitely a seller's market but I don't see that changing in the next 5 years.

Any suggestions to protect against major damage?

Yes, charge first months rent and last months rent as deposit. You could also sale it and hold the note. Folks tend to take a little better care of the property when they have some skin in the game. For example, Ask for $10000 down and you finance it.

[SharpStix]

Is it the tenants being picky or causing problems or is it just normal wear and tear?

A little of both. Made a mistake and bought a track home in a master planned community out in Arizona. These builders were throwing up houses at a record pace and selling them at a premium. Shortcuts were taken and build quality suffered.
Another thing is stuff like air filters. Most tenants don't spend the time or money to replace them as scheduled, consequently I'm looking at hefty repair bills this summer.
Had to replace two water heaters because the salt from the water softener causes excessive corrosion (out west problem).
Nothing really monumental but gets annoying when it seems like your constantly having to shell $400 here and $500 there. My case is unique in that I am unable to make the repairs myself due to location.
If you decide to do it I would recommend signing up with a property management company, if you get a crummy tenant you will be glad you have them on your payroll.

[randal]

You will get to screen any potential tenants. Make sure you do as much homework on them as you can.

X2

[Throwin Darts]

I own 4 rental properties and while there's been a few headaches, they've paid down the loans and generate some extra $$...I'll own them free and clear in <10 yrs. One thing to consider: if you move out for more than 3 yrs and then sell, you'll not be able to exclude the cap gains from the sale from taxes. IRS allows up to $500K (if married) from any gains from a house sale as long as you have lived in it for 2 of the past 5 yrs. So if you move out and don't sell it before 3 yrs, you lose the tax shelter when u sell it (unless you move back into it).

This advice is what I would focus on.....TAXES! If you've lived there as your homestead for the past 2 years you get to exclude cap gains. That window expires in 3 years.

[catman]

Not necessarily looking for a second job but don't mind working a little extra on it. Plus I don't expect to spend more than a few hours per week dealing with it.

Just like anything else, you have the pros and the cons. I'm sure you've weighed in on both options but just wanted to give you my 2 cents.
I had this same chance to buy a new place and rent my old place. For me it was a no brainer because my parent had always been landlords and I saw the potential. So I took the gamble, yes there were times that i had to deal with dead beat tenants and there were other times where I didn't have to do much. The house is still leased out 10 years later. I have not really missed more than 2 months rental over 6 tenants. Also, it allowed me to buy more homes and continue with my 40 hour/work week. I will say that I've been lucky to find good tenants for the most part.
What's the saying "Sweat Income"? It comes down to what some others here have said, it all depends on what you really want.
Good luck either way you go!
Cat

[Eagles1181]

Basic investment decision. If you sell it, where will you invest the money? What will be your rate of return? In you keep it and rent, how much will you make after you cover taxes, insurance, interest, ect...

Eagle

[JustYakin]

Rent it....maybe a headache from time to time but in the end it's free money...good luck in your decisions!