I recently became interested in real estate investment and if I knew then what I know now, I would not have purchased the home in which I currently live. We bought it about 10 months ago, just as the real estate market began to flatten. The home is larger than the average home in my neighborhood (3400 sq. feet), fairly new, and in good condition. It is in a high growth part of town where there is a lot of development going on, both commercial and residential. In this area, there is a glut of inventory and we are in the foreclosure capital of the world.
My family may be moving within the year for career advancement reasons. I would hate to sell this house in this type of market as we would most likely incur a loss because of transaction costs.
Would finding a lease option buyer make sense? Our monthly costs are approx. $1600 if no repairs are needed. I went to RentClicks.com and found similar local houses renting for $1600 and less. I’m wondering if a lease option might give me the opportunity to price the house slightly higher than the market rate to wait out this downturn.
What should I be considering and learning to make a good decision? Suggestions for books to read or thoughts to consider are welcome and appreciated.