Question about renting/selling?

We are in an interesting situation. We have a great 2 br/2 bath co-op and don't NEED to move. We found a house that we LOVE this weekend and want to make an offer. I know not all offers are accepted, etc., but I need to figure out a potential timeline if it were to be accepted.

We can a) rent our co-op and hold on to it for a few more years until the market picks up a little, or b) put it on the market and see if it sells and just get out now w/o making any $. We are leaning towards renting b/c it will be easier. We are walking distance to LIRR, Wintrhop and the courts.

The question is, WHEN do you put an occupancy date for? When do I list this? Do I list now with a June 1st occupancy? Do I wait til they accept our offer?

We could afford to carry both mortgages for 2 months I'd say after all is said and done with down payment, etc..

Also, besides Newsday, Craigslist, hotpads.com, where would you put an ad for a rental? Are people even looking now for 2 months from now?

Our realtor said she'd put it up for rent/buy, but I don't know if that will attract buyers more than renters?

I'd appreciate insight from anyone who has a thought on this! :)

Re: Question about renting/selling?

I was in the same exact situation as you.

We listed once we had an accepted offer. We didn't want to make the house closing contingent on the closing of the co-op so we borrowed from my mom to do the closing for the house and paid her back the day that we sold the co-op.

We had an accepted offer in the beginning of March. We listed the apartment mid-March once we secured the mortgage.

We had an accepted offer at the end of March and he backed out when he couldn't secure a mortgage, and the day before we were supposed to go into contract.

I relisted, had another accepted offer in July, and closed in October. It took about a month and a half for her to get a mortgage, with all the refi's going on at the time...she got approved by the board while we were on our HM, and we closed 10/14.

Hope that helps!

Re: Question about renting/selling?

thanks!

:bump:

Re: Question about renting/selling?

If you can only afford both mortgages for 2 months, I'm not sure you would be approved for the mortgage of the house.


When we bought our current house, they only take 75% of the rent into consideration to cover the first mortgage. So you would have to cover the second house mortgage plus 25% of the coop and that has to be around the 30% monthly salary. Maybe things have changed in the last 5 years, but if anything they are stricter now.

Re: Question about renting/selling?

As a renter and an obsessive planner, I appreciate finding listings for apartments opening up in the future. That being said, you may get a lot of people looking to move sooner, or will not get much interest until closer to the start date of the lease.

Good luck !

Re: Question about renting/selling?

We're in a similar position. We have a 2 family home that we co-own with my SIL/BIL. We are in the process of buying our second home and planning on renting out our half of the current home. When we first starting looking into this (this fall), it was not as big a deal as it has become.

Apparently over the last few months a lot of people have been buying new homes, claiming they will rent their current home and are walking away from the "old" home. It's becoming a huge problem apparently. So now, to get a mortgage, we have been told we have a signed notorized lease for a year AND a cashed check AND show your bank statement (to prove that you didn't lend the "rent" money to the renter). It's kind of crazy.

Not trying to rain on your parade - and it's a funny rule since a lease doesn't mean that much, the mortgage holder is still responsible for that original mortgage.... Just thought you should be aware.

And still, we don't qualify for as much mortgage b/c of the current mortgage. The 75% rule still applies.

Feel free to contact me if you have any questions. Good luck!

If it makes you feel better, we are in contract with this whole craziness and have been told by our mortgage broker that financing should not be an issue if we produce the above.

Re: Question about renting/selling?

Thanks guys....

We got pre-approved for a purchase price much higher than we are intending to purchase with no contingency, so we don't have to show proof of lease.... I would just feel more comfortable if we had that in hand.... We sat down and really looked at it and we have probably a year's ability to pay both...