Quote:
Originally Posted by McLovin
Whether there is drama or not depends on the numbers.
If the total monthly expenses for the house (mortgage, property tax, maintenance, property management fees, association fees, etc.) is $2K, and you can rent it for roughly $2K, that's easy.
If the total monthly expenses for the house are $4K+ and the house can rent for $1,500, that gets a little more dramatic. Esp. since the value of the house isn't going up in the next half decade or longer (and in fact will probably continue to decline for some time).
Expenses add up. My guess is the NJ property tax on that house is $1K or more, per month.
There's a reason why millions of houses are going back to the banks.
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The mortgage and taxes are about $2.5k/month, taxes alone are $750/month. We can probably rent it for that amount.
The drama comes from the fact that selling was a much better option for us, because the company that hired me pays real estate fees, closing costs and points as part of the moving package. Plus, there are some smoking deals on the buying end right now. That is why we have been trying so hard to sell.
If I rent, I cannot buy, lose those incentives, and may rent for a very long time before the market recovers.