SlobberKnockinFootball Posted May 9, 2011 Share Posted May 9, 2011 All- I have to move to Florida by July/August time frame. Outside of getting a job the big issue I have is getting out of my house. I can't sell it because I'm upside down in the house by $30k. Which in the grand scheme of things isn't really that bad considering some are in the 6 digits upside down in their homes. So I'm reaching out to the ES community for some ideas how I'm going to make this happen. I've thought about renting the house.. but I'm afraid the monthly mortgage payment might be too high to attract renters. Any suggestions/thoughts etc are appreciated. Thanks, SKF Link to comment Share on other sites More sharing options...
Stew Posted May 9, 2011 Share Posted May 9, 2011 All- I have to move to Florida by July/August time frame. Outside of getting a job the big issue I have is getting out of my house. I can't sell it because I'm upside down in the house by $30k. Which in the grand scheme of things isn't really that bad considering some are in the 6 digits upside down in their homes. So I'm reaching out to the ES community for some ideas how I'm going to make this happen. I've thought about renting the house.. but I'm afraid the monthly mortgage payment might be too high to attract renters. Any suggestions/thoughts etc are appreciated. Thanks, SKF When me and my wife met, she had her own house. Before we got married, I purchased my first home, and we both moved into it. She is in the same situation you are. What we ended up doing was renting out the house. We dont get the full mortgage price in the rent, but the majority of it. We don't want to short sell, or let it go to the banks if we can still handle the payments on it for right now. Its on a nice half acre next to Marriot Ranch in Fauquier. Now we still may try to sell if the renter decides to leave. Maybe go as low as we can and possibly pitch in the difference just to get it off our books, but right now, its a decent set up so we don't worry too much about it. I take it you purchased your home at the peak of the realestate market like my wife? Link to comment Share on other sites More sharing options...
I_Bleed_B&G Posted May 9, 2011 Share Posted May 9, 2011 I was in a similar situation. I ended up renting out my house but have to dish a couple hundred bucks a month to cover the mortgage since the rent is lower yhan the mortgage note. I used a property management company to screen applicants and than I decided who to go with. If you go this route, I recommend trying to find a renter who will do a 2+ year lease that way you don't have to worry about finding somone else every year. Good luck Link to comment Share on other sites More sharing options...
Wrong Direction Posted May 9, 2011 Share Posted May 9, 2011 I was in a similar situation. I ended up renting out my house but have to dish a couple hundred bucks a month to cover the mortgage since the rent is lower yhan the mortgage note. I used a property management company to screen applicants and than I decided who to go with. If you go this route, I recommend trying to find a renter who will do a 2+ year lease that way you don't have to worry about finding somone else every year. Good luck Keep in mind that nobody can get a loan these days, so there are a lot of people looking to rent. It's definitely worth a try. I agree about the 2-year lease. I'm actually about to re-up my tenants on a second 2-year lease. With so many people recently foreclosed upon, many know their credit won't be worthy to buy a house soon, so they like the idea of a 2-year lease. Link to comment Share on other sites More sharing options...
TheGreatBuzz Posted May 9, 2011 Share Posted May 9, 2011 I believe that the difference between what you bring in for rent $ and what your mortgage payment is you get to deduct on your taxes also. I'm am no tax attorney though. Just pretty sure I heard that somewhere. And I did stay at a Holiday Inn Express last night. Link to comment Share on other sites More sharing options...
SloppyOneXXVI Posted May 9, 2011 Share Posted May 9, 2011 I believe that the difference between what you bring in for rent $ and what your mortgage payment is you get to deduct on your taxes also. I'm am no tax attorney though. Just pretty sure I heard that somewhere. And I did stay at a Holiday Inn Express last night. This is true. You also get to claim the interest paid on the mortgage against your taxes and the depreciated value of the house. So even if you lose a little bit each month, you'll make it back in April. Link to comment Share on other sites More sharing options...
ASUki Posted May 9, 2011 Share Posted May 9, 2011 This is true. You also get to claim the interest paid on the mortgage against your taxes and the depreciated value of the house. So even if you lose a little bit each month, you'll make it back in April. This is true...it helps you when you do your taxes. Also, you can take any expense associated with your house (travelling to and from, repairs, etc.) off your taxes. If I'm not mistaken, repairs you can take off that Calendar Years taxes, but you have to depreciate improvements over 3 or so years. Your CPA could help with that though! Good luck! Link to comment Share on other sites More sharing options...
Lombardi's_kid_brother Posted May 9, 2011 Share Posted May 9, 2011 If you are just $30K underwater, you can probably easily do a short sale. That impacts your credit though. I'm currently renting my place in VA and it's just a nightmare. I spend half my life dealing with it. Link to comment Share on other sites More sharing options...
SlobberKnockinFootball Posted May 10, 2011 Author Share Posted May 10, 2011 If you are just $30K underwater' date=' you can probably easily do a short sale. That impacts your credit though.I'm currently renting my place in VA and it's just a nightmare. I spend half my life dealing with it.[/quote'] Yea, I'm not worried about my credit at this point. I'll take a hit for a few years if I don't have to deal with the stresses of renting. It's always a bonus to live with someone who's credit isn't bad ---------- Post added May-10th-2011 at 11:36 AM ---------- Does anyone know the repercussions for short selling a home? Obviously I know it affects your credit, but for how long? etc. I need to be gone by the end of the summer, so if I decide to rent this place out and I can't find any renters... Short Selling might be my only option. Thanks again! Link to comment Share on other sites More sharing options...
TimmySmith Posted May 10, 2011 Share Posted May 10, 2011 Ever considered house trading? I have a feeling this is going to be a huge market in the future for people like you. Link to comment Share on other sites More sharing options...
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