Real Estate 101 - I need help!

[Crystal8]

I could sure use your expert advice and knowledge. Any ideas would be most appreciated. Thanks!



My dilemma;

• I have a mortgaged property (principle residence with no option to refinance) with an updated mobile on 5 acres.
• Mortgage in good standing (6th year but little equity because refinanced).
• The property has been on the market with little to no buyer action.
• Area is situated by a popular lake with both full time/recreational owners nearby.
• Popular area by one of the best fishing lakes, with full time & recreational home owners close by.
• I am relocating out of the area.
  
  
  What to do?
  Mortgage Company - not sure if allow property to be rented? Anyone know how they view this?
  Annual costs: insurance, mortgage, property tax = approx. $10,440 (rental insurance triples on a mobile, loss of homeowner grant).
  Rental income = $750-800/mth = $9000 - $9,600/yr.
  CRA - ?

Questions: What's better? Keep as principle residence and try and SELL (money going out ...) or RENT long term pay mortgage down? Do one of these options help increase my chance of owning a second property in the future? Lease to own?

 

[invst4profit]

I would drop the price and sell asap.



Reasons: You are not in the area and therefor can not keep an eye on the tenants.

A property management company will not take on a single rural property (if one does you will be sorry)

With no equity you will continue to pour cash into the property to maintain it.

As a rural property with rental in the $800 range the quality of tenant you will attract is bottom of the barrel (welfare)

You will need to renovate when you do decide to sell spending even more money.



Take your loss now and be glad you did not take on the headaches of tenants.

 

[Crystal8]

Thanks, I appreciate the feedback.

 

[Thomas Beyer]

good insight here !



Sell, unless area has huge immediate upside or short-term rentals can bring in $20,000 a year or more. Selling rural properties, especially a mobile, takes a year or 3, far far longer than in the city.



There is downside to ownership. Every asset comes with a liability. The liability sometimes exceeds the asset value !