Take The Job, Take A Hit
Lori is VERY upside-down on her house and wants to know if renting it out when she takes a new job is the best option.
QUESTION: Lori just got a job offer to move to Seattle and make $106,000 a year. They owe $240,000 on their house, but homes on their block are only selling in the low-to-mid 100s, and there are 18 homes for sale in their area. Do they take the job and rent the house out, or some other option?
ANSWER: Get the company that wants to hire me to buy the house for $240,000. It’s not worth $15,000 to take this hit. I’ll pass on the job. Either stay there and wait this out, have your company participate with you in some way to get you out of this house, or move and rent it out. I don’t like long-distance landlording. Either the company steps up or you work out a short sale with Wells Fargo where you don’t have to make up the difference, or turn the job down. You can’t take a $15,000 raise because of this house purchase.