Expert: Dick Dennis - 9/11/2006

Question
Mr Dennis,

Thanks for taking the time to answer my question.

I am thinking of selling my home.

My current note is about $850/ month. I think I could rent it for $1000/ month. Is there a general rule that should be used in determining the difference in note vs income that should be used in making that decision? Should I have a bigger spread? Is only $150 too small? Seems expenses would eat that up.

Thanks,

Danny

Answer
You'll be negative each month when you add in the property taxes and insurance. If you can handle the negative each month, then go ahead. But you may want to consider lease option. There are always more tenants who want to do that than sellers who are willing. There are many ways of handling a lease option. I recommend you consult with a local real estate attorney to put one of those transactions together for you. Or you can rent or buy a book on lease/options to see how you could do it. I do wish you well.

Dick Dennis            dixiedee13@aol.com