Question on the loan

[sidkara]

We have $100k left in the mortgage in the present house.
We have a situation to move and hence have to buy another house.

Is leaving the current house for rent advisable. i hear it is an headache as every time the tenant leaves there is added cost of repairs, painting etc. how much should we normally estimate for such work?

[dczech09]

We have $100k left in the mortgage in the present house.
We have a situation to move and hence have to buy another house.

Is leaving the current house for rent advisable. i hear it is an headache as every time the tenant leaves there is added cost of repairs, painting etc. how much should we normally estimate for such work?

How far away are you moving? If you are moving far away, or even to another state, then managing a distant property may not be such a good idea. I have heard that it is a massive headache no only for when tenants leave, but also when just ensuring that rents is paid on time, maintenance is being done on time, etc.

As far as how much one should estimate on paying for maintenance costs - I do not personally have any experience on this, but I have heard that the average owner should plan on paying about 2% of the property value per year on maintenance costs.

[bjl584]

We have $100k left in the mortgage in the present house.
We have a situation to move and hence have to buy another house.

Is leaving the current house for rent advisable. i hear it is an headache as every time the tenant leaves there is added cost of repairs, painting etc. how much should we normally estimate for such work?

We'll need a lot more info. There is no one size fits all answer to your question.

You'll need to research what current rental rates are where you live. If you are moving far, you'll need to decide if you want to be a long distance land lord. If you are long distance and don't want to deal with repair work, then you'll need to check rates at property management companies. What is the housing market like where you live? How long would it take to sell your house and at what price? Can you carry two mortgages? Do you want to carry two mortgages?

[sidkara]

We are moving only 10 miles away from the current house.

[NayaBlu]

Oh dear, when I read that you were thinking of renting your home, I almost choked. Don't do it. Just. Don't. Do. It.
We have been up to our eyeballs with problems with one tenant after another. I have so many horror stories where tenants have almost ruined us. Do yourself a huge favor and don't get into the rental of your home.

[greenskeeper]

my parents "retired" to the jersey shore. Still have their old house in PA paid in full that they rent out. They have monthly cash flow with an asset that has value and will increase over time. The house is almost perfect for renting...electric appliances and heating so little to no maintenance required. Of course there is the long term maintenance (roof, etc) that my parents are allocating a portion of the monthly rent towards.

[helpfirstdollarsecond]

Loan eh?

Yeah getting a loan is always an iffy subject for me. I think it depends on how you can manage your stress. I can't take a loan because even if it's like a $100 bucks, I'll be constantly thinking about it. Hope things work out for you though . . .