So I am ready to gtfo out of my house. Stupid since I just built a 600 sq ft deck, but idc. I am tired of spending money on a house that is never going to be recouped. This was meant to be a starter home and I feel like I have already been in it too long. So because the housing market sucks, I am faced with 2 choices, rent my house out and worry about 2 mortgages, or sell it at an extremely discounted rate and walk away with a pretty huge loss. The loss wouldn't be such an awful thing, because the investment potential of the place I would be buying would more then make up for it.. because they would be dealing with the same thing. Basically I would be losing about 40k I have invested in the property and they would be losing out on more then 100k.
I don't want to do the typical sell my house and then scramble to find a place to buy before I close strategy. I feel like that would put me into a place that wasn't exactly what I wanted. So I am just going to search and then if I find one that is right, put in an offer and then put my place on the market, first for sale and then for rent if I get no interest. Houses in my neighborhood for rent only stay vacant like a month tops. They go real fast and rent for about $300 more a month than my mortgage. I have enough saved for 10% down on the new place and almost a years worth of mortgage payments on the old one. Based on the numbers I make enough to cover both for a longer term as well, should that be necessary.
People seem to do this all the time, but I feel a little stupid doing it. But I am just ready to get into a place that I can customize the way I want, without worrying about getting that money back. But I know that it would be hard for me being a landlord if I was forced to rent.. the knowledge of someone fucking up my investment would make me lose sleep and I would probably be a wreck. But it is a very real possibility that will be my only choice since the market is such a crap hole right now and I can't walk away with nothing. Am I stupid for following this strategy? Should I just say fuck it and stay where I am? Decisions like this make me want to puke.
Housing prices will probably fall lower so if you are looking to buy, you may want to wait a few more months. It doesn't appear there will be any sustained recovery in housing until mid 2012 at this point. An article you may want to read:http://www.rew-online.com/2011/05/31/do ... es-tumble/