Should I sell my house in Florida... or keep it?

Housing Topics
1

I’m in the military and will be moving to a different state soon. I bought my first home using a VA loan back in 2020 with a 2.5% interest rate, which is great. The thing is, my HOA and insurance costs keep going up each year, and the home is worth about $150k more now than when I bought it. I live in Panama City Beach, and most of the homes in my development are rentals, so renting it out wouldn’t be hard. My mortgage, including HOA, is $1650 per month, and houses around here rent for $2000-$2400. I’m trying to decide if I should sell it now and cash in or rent it out for some extra income. I’m also worried about the worsening weather each year, the insurance issues, and rising HOA fees. I’m thinking the market could take a hit, and I might lose the equity I’ve gained. What do you all think? Is it worth holding onto this house long-term?

Edit: The house was a new build in 2020, thought that might be important to know.

2

I’d think about selling while you can, especially with all the issues you’ve mentioned.

3

Zan said:
I’d think about selling while you can, especially with all the issues you’ve mentioned.

Yeah, I’d sell and get out now. The Florida real estate market isn’t exactly stable right now.

4

Zan said:
I’d think about selling while you can, especially with all the issues you’ve mentioned.

Totally agree… take the money and leave before insurance goes even higher.

5

Zan said:
I’d think about selling while you can, especially with all the issues you’ve mentioned.

Sell and don’t look back.

6

Would you buy a rental property in Florida with the same $150k if you were living elsewhere? If not, then I’d say sell it.

7

Bliss said:
Would you buy a rental property in Florida with the same $150k if you were living elsewhere? If not, then I’d say sell it.

The real question might be, ‘Would you buy a property with a 2.5% mortgage?’…

8

@Taran
In Florida though… that’s key. Low rates don’t matter much if a hurricane wrecks the place and the insurance company finds a loophole to avoid paying. You could end up with huge bills and no place to live.

9

@Taran
New buyers aren’t getting that rate though. Sure, the current owner has it, but anyone else will have to deal with today’s high rates. It’s going to impact the house’s value.

10

Wilkie said:
@Taran
New buyers aren’t getting that rate though. Sure, the current owner has it, but anyone else will have to deal with today’s high rates. It’s going to impact the house’s value.

We’re talking about the current owner, not new buyers.

11

@Taran
Right, but whether to sell or keep it depends on future buyers too. High rates, HOA fees, and natural disasters are going to make things tough.

12

Wilkie said:
@Taran
New buyers aren’t getting that rate though. Sure, the current owner has it, but anyone else will have to deal with today’s high rates. It’s going to impact the house’s value.

Even with the high fees, a 2.5% mortgage on $150k of principal would still make renting it out a great deal.

13

Wilkie said:
@Taran
New buyers aren’t getting that rate though. Sure, the current owner has it, but anyone else will have to deal with today’s high rates. It’s going to impact the house’s value.

They could transfer the VA loan to another service member and have them cover the price difference.

14

@Valerie
Someone who isn’t eligible for a VA loan could also assume the mortgage.

15

Mila said:
@Valerie
Someone who isn’t eligible for a VA loan could also assume the mortgage.

I didn’t realize that was possible.

16

Bliss said:
Would you buy a rental property in Florida with the same $150k if you were living elsewhere? If not, then I’d say sell it.

Wish more people thought about it this way.

17

Dara said:

Bliss said:
Would you buy a rental property in Florida with the same $150k if you were living elsewhere? If not, then I’d say sell it.

Wish more people thought about it this way.

The real question is: Do you want to be a landlord? Especially one that lives out of state? Being a landlord isn’t as easy as people think.

18

Bliss said:
Would you buy a rental property in Florida with the same $150k if you were living elsewhere? If not, then I’d say sell it.

Slow down, Dave…

19

I’d sell it. Sure, extra cash sounds great, but being a landlord is no walk in the park. You’ll be responsible for all repairs, and you can’t count on renters always paying on time or not wrecking the place. Plus, HOA and taxes will just keep rising.

20

@Zoe
…and don’t forget about hurricanes…