Comments on: Should We Offload Our #1 Mistake??

By: J. Money

J. Money — Wed, 20 Jan 2016 16:27:58 +0000

In reply to Melessa. I'll have a major update on this very soon :)

By: Melessa

Melessa — Sat, 16 Jan 2016 14:38:26 +0000

I just found this article and find it so interesting. We are in the same situation and are trying to decide which path to take. Did you sell your home? What price did you end up getting? 280 or 320? Or maybe you decited to rent again based on the sales market in your area. Great comments from every one.

By: J. Money

J. Money — Mon, 21 Dec 2015 17:48:48 +0000

In reply to A Reader.

We decided to put it on the market :) So we’ll know once and for all what we’re dealing with now – fingers crossed!

By: J. Money

J. Money — Mon, 21 Dec 2015 17:47:48 +0000

In reply to Tre.

We’re losing almost all of the $600! haha.. Some goes towards principal payment of course, but yes – would MUCH rather throw it all towards investments each month – which is the plan down the road :)

By: J. Money

J. Money — Mon, 21 Dec 2015 17:46:25 +0000

In reply to Marisa Stone O'Brien. we live pretty far away and suck at home maintenance anyways :( we did raise the rate during the last renewal, but nothing too substantial.

By: A Reader

A Reader — Sat, 19 Dec 2015 15:30:11 +0000

What did you eventually do? I’m reading through selections from the archive of this blog, so perhaps you reveal what happened later. Your debate reminds me of similar decisions I’ve had to make or am making now, related to possessions small and large, and the pros and cons of holding on to or selling them.

By: J. Money

J. Money — Mon, 19 Oct 2015 16:55:16 +0000

In reply to Alex. I think you're right in that the longer we keep the more it'll even out and then *make* money it's just a question if I can stand it emotionally. Which is getting harder by the month ;)

By: Tre

Tre — Sun, 18 Oct 2015 12:52:25 +0000

How much are you losing paying $600 towards that house every month instead of investing $600? We are in a similar situation and decided to hold onto the property until we could sell without taking a loss. Hopefully next year will be the year we sell!

By: Marisa Stone O'Brien

Marisa Stone O'Brien — Fri, 16 Oct 2015 23:20:00 +0000

How close do you live to the property? Can you property manage yourself? Although it is a pain in the ‘YKW’ don’t the charge you 25% of the monthly rental income, wouldn’t that get you closer to break even? Could you at the same time raise the rent?

By: Alex

Alex — Tue, 13 Oct 2015 13:58:03 +0000

I’d keep the house. Sure, you lose $600/month but you’re presumably also paying down a mortgage each month (which based on when you bought and for how much and interest rates at the time I bet you’re paying down $600-700 of principal each month).

Further, your house is appreciating. It might not be going up at 20% per year, but even at 2-3% you’re looking at an increase of $6-9k each year which you will eventually get back when you sell.

Rent should only go up over time while your mortgage stays the same and your taxes may only go up slightly each year. A $600/month loss now might be a $300/month loss in a couple of years and a breakeven in 5 years.

Then finally, its what can you do with the $40k you have now? Even at a modest 5% return thats $2k/year of $167 a month.

All of this and I think you’re not really losing as much money as you think.

Unless you’re totally strapped for cash each month and the $600 is just tearing your saving apart then you’re better off holding the house.

I had a similar issue with a NYC co-op I bought in 2005 and moved out of in 2010. Granted NYC is its own animal. However, the first year I lost $200/month and now I make $200/month, plus all the perks I mentioned above.

Good luck.