- Do I have equity in the home?
- How are homes in my Neighborhood selling?
- Can I anticipate positive cash flow if I rent the property?
- How long will it take for the appreciation to catch up to the purchase price?
- What will the costs of renting be, financially and personal time and emotions?
- What can be expected to be maintenance costs?
When the family home becomes an investment property the bottom line becomes the decision maker. Some of the information you may know, and some you may need some area experts to help with. If you have a good equity position in the property cash flow will probably be fine, but what is the rental market? If the rent is close to the amount of the mortgage payment, is enough of margin to cover maintenance and periods of vacancy?
If you are waiting to recoup a loss in value since your purchase, consider how much you home may have lost during the downturn, and how much you want to make up. If your rental income covers your costs and mortgage, how long will it take to recover your loss? Property in San Diego County has been predicted to start its recovery and the Median home price has been up for the last 11 or 15 months, depending on the survey you read. The current recovery rate has been estimated to be about 2% in 2011.
Talk to your local area expert Ruth Mills. She can give you the facts you need to make the business decision for your property in San Diego County.
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