“We Will Just Rent Our House Out Until The Housing Market Turns Around”
This is the notion many homeowners adopted after our housing crash back in 2008. “We will just rent our house or condominium out to someone until the market turns around and then we can sell it again.” This seemed to be the easiest solution for the problem of an underwater house. Yet, the reality is, becoming a landlord has become a nightmare for most and it is not the easiest nor the financially wisest solution out there.
Have you ever been a landlord? Question number one is, are you positively cashflowing on the property? Meaning, after principle, interest, taxes, insurance, and repairs/maintenance, is the rent bringing in more than your expenses? The majority are not.
Question number two is, have you had the wake me up at 3am call with an emergency to fix plumbing issues?
Three, have you had your tenants be late with payments?
Several years ago, short sales weren’t often used by distressed homeowners many times because they were simply unaware of the solution. A short sale allows you to sell your house for less than what you owe AND you are able to qualify for an FHA mortgage within 1 year of waiting.
“Well, we don’t want to ruin our credit. We will wait.” <– How long??? so if you owe $350,000 and can sell your house in today’s market for $300,000, it will take you 4 years to get out from underwater. Four years of being a landlord and if you are negative cashflow, that is more money out of your pocket every month along with the time, effort, and money to maintain your tenant and property.
The BEST solution is to short sell your house today, expedite your credit repair using a legitimate credit repair company (contact us for more info), and qualify for another mortgage in a year where you can move into your new home and actually build equity on the home.
If you would like to know more, please contact us here to speak with the best negotiators/short sale agents in Washington State.
Hope this helps