Selling vs. Renting Out Your Home
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– Jan 31, 2022(6 replies)
Hi everyone! We bought our forever home in Alameda and are moving next month. Do we keep our current house in Oakland and rent it out? Given Oakland tenant protection laws, it is impossible or expensive to get a tenant out so we'd lose control over timing of a future sale. We'd also be at a net negative for a while renting it (losing 12-14k per year) but the house should appreciate far more than that per year. It's a very nice starter home in the Dimond/Lincoln Highlands neighborhood. Making gains in the stock market over next few years may be tough in this climate. And I feel I always hear of people who regret selling rather than keeping real estate in the Bay. Do we a) keep the house for the future appreciation and as inflation hedge or b) sell our house and perhaps invest in other real estate markets?
Curious to get opinions/experience on here, other experiences landlording in Oakland/Alameda/Berkeley, or if there is anything else we aren't thinking about.Jan 31, 2022
– Jul 18, 2020(7 replies)
We're considering a move to the Sierras to be closer to nature and my partner and I disagree on whether or not to sell our small Berkeley home. We bought about 5 years ago and my stance is that the price will only go up and we could rent it for what the mortgage and taxes are. His stance is that we could sell and buy a nicer home in the town we relocate to and have less debt and better quality of life. I think my tendency to hold onto the house here in the East Bay is because I'm scared about never being able to come back. I'm not sure if I'll want to, but I want to keep the option open. We are not high income but I want to keep the house as an investment, but have also heard horror stories about being landlords in Berkeley. Any advice? And who should we even talk to to help us make a good decision? A financial advisor maybe? Recommendations welcomed. Thanks BPN Community!Jul 18, 2020
– Dec 27, 2019(10 replies)
Hi BPN, My family is considering a move to Madison to be near family and we need help deciding whether or not to sell our Berkeley home prior to our relocation. We bought in 2015 and have about 400,000 in equity due to the crazy ridiculous market. (I'm sorry- I hate posts where people say stuff like this but it is relevant to the decision-making process so I had to share.) We could possibly take some of this equity from our home to purchase in Madison although we aren't sure our income will allow us to take very much equity. Based on calculations online it seems rents are high enough that we could rent the house to cover the mortgage payment and taxes, but it is highly tempting to sell and take the equity to invest in the stock market and have a very small mortgage payment on a home in Madison. Part of my heart is breaking leaving here, so I think emotionally I like the idea of keeping the house to be able to return to the Bay Area if/when we would be able to. Have you moved away and maintained a rental property here? Pros/cons? Any advice is appreciated.Dec 27, 2019