Rental Property - Keep or Sellgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
What guidelines should I consider in regards to keeping or selling my former house, now a rental property? Like my own home, both properties are not paid for (or close to being paid).
How real is the possibility that real estate will crash such that I'm holding a loan note for a property worth a fraction of that? I'm not a real estate guru so do not know what factors to consider. If there is a real chance of a prolonged and significant downward slide, then it would seem prudent to sell the rental house while I can still make a profit. Or, is it better to hold on to it as a long-term investment (assuming that my tenant can pay the rent so I can pay the mortgage company)?
Anyone else in a similar situation? Mike
-- Mike Gabriel (email@example.com), September 01, 1998
Are you making a positive cash flow on the rental? What is your balance of the rental and it's sale value? What shape is the rental in? Is it in a good location for resale? There's a lot of assumptions. Do you have enough in savings to make payments if your tenant moves out? You need to figure out where your financial strength is at. If there's a possibility of losing it then sell it. If the house your living is a bigger noose around your neck than the rental, then sell your current house and move back into the rental. It's hard to predict what is going to happen. But one thing is for sure, if you don't have a nest egg to get through hard times, then I would definately sell.
-- Bardou (firstname.lastname@example.org), September 02, 1998.
I think the most important question is. Will things get bad enough to create widespread unemployment? Will your tenant have the ability to continue paying the rent.
-- Vic (Light_servant@yahoo.com), September 02, 1998.
inflation or deflation like japan may be a big factor
-- jim patrick (email@example.com), September 02, 1998.