tag:blogger.com,1999:blog-4587624244418783431.post7991704153089605508..comments2009-01-06T12:31:15.753-06:00JCLhttp://www.blogger.com/profile/16002871438267220633noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4587624244418783431.post-8514223096716258532009-01-06T12:31:00.000-06:002009-01-06T12:31:00.000-06:00Also, a novice investor should look into hiring a property manager as well (IMO) so they don't get in over their head. Just build that 10% cost into the equation... that 6% you would have paid to sell can cover lots of pm fees.JCLhttp://www.blogger.com/profile/16002871438267220633noreply@blogger.comtag:blogger.com,1999:blog-4587624244418783431.post-2510854964253484082009-01-03T05:01:00.000-06:002009-01-03T05:01:00.000-06:00I totally agree. In most markets, houses have lost so much value that a lot of people's houses are worth less than the outstanding mortgage loan balance. So even if they were to sell, they would still owe a balance on the house. Now when you consider that they also have to either purchase another place to stay or put down some sort of deposit to rent a place, and it quickly becomes obvious that the current situation is not conducive to selling.<BR/><BR/>In reality it all comes down to how much you can get from an eventual renter and how much of your mortgage payment is going to be covered by their monthly rent.<BR/><BR/>Also, keep in mind that if you're being relocated, then you won't be there to act as the landlord. You'll likely have to hire a property management company and that's going to cost about 10% of the monthly rent collected.<BR/><BR/>So all in all, it's a balancing act, but the premise of renting at least to wait out the current real estate downturn is a very sound one.Atlanta bad credit home loanhttp://moneygalaxy.com/credit/atlanta-bad-credit-home-loannoreply@blogger.com