When to sell house in an unfortunate scenario.
My husband and I (no kids, 40s) bought a house 1 year ago. We rented a long time before that and did really like our rental. One in a million type of good landlord. Newer construction SFH. Really nice. Low rent. Close to everything. No CC debt, no car payments, still had student loans, 5 month EF. I had been having moderate orthopedic health issues for about a year and was not working at the time. Besides tackling the SL’s, monthly budget was ‘good.’ One income was fine. We were Davish. I know we shouldn’t have bought the house with SL’s.
We bought the house in a rural town about 40 minutes away. Close to family. While our offer was contingent on inspection I wanted to back out bc I knew the timing wasn’t right and I didn’t want to be far away from everything including my husband’s job. The inspection had enough to give us an out and I begged him to back out. Husband wanted the house so we got it anyway. Pressure from others to buy it as well. Mortgage more than our rent and I was afraid of the increase and repairs/maintenance since I wasn’t working and I didn’t know when I was going back to work. I didn’t want the extra stress. I came to my senses too late I guess so I’m just as much to blame but now I already hated this house before I even moved in. I cried on moving day. I knew it was a mistake. I was scared. My gut reaction was right.
One month after moving I had to have a major orthopedic surgery. I had major complications from the surgery (not surgeon’s fault) and long story short my life is forever changed. Chances are low that I’ll ever return to work. At least never full time again for sure. Most of my constant medical/PT appointments are now 40 minutes away every week. Some doctors are 2.5 hours away where I had the surgery. I’ll need to be in PT for life to manage and exercise in a pool. All 40 minutes away.
This house has killed our finances. Major repairs. Increased monthly expenses. We now have $16k in CC debt. Lower savings. Barely any margin in our month due to medical bills and endless medical bills coming and repairs/maintenance. We are not able to pay off any debt. Within the next year or 2 the roof will need replaced (not leaking yet) and the HVAC is 30 years old. Ticking time bomb.
We want to sell and go back to our rental when one becomes available. If we live in the rental we can pay off debt, including SL’s and comfortably live on one income again, close to the medical facilities that I need now and in the future. Hopefully I’ll be able to work in some capacity again. It won’t be for a couple years at least. We need this weight off of us. See how everything pans out health wise. Eventually buy again in the future once life has stabilized, baby steps have been accomplished and buy correctly.
House appraised at $250k, purchased $250k VA loan $0 down. So almost no equity after 1 year. Extremely low inventory in this town and it’s a great house in a desirable neighborhood. I would be ok with taking a $5k loss at the closing table bc otherwise I know we will be on the hook in a few years for a roof/hvac. I’d rather cut my losses now.
Would you sell now and take the loss or wait a few years and gain a little equity to break even/tiny profit but risk the roof and hvac replacement? I also weigh heavily the importance of being close to medical facilities - within 5-10 minutes of rental home.
Please don’t beat me up about buying the house. I already know it was mistake and I’m in the lowest spot of my life right now.