By the way, the house is in Alabama and he is moving to Florida for the job which he already has taken by the way.
What I was trying to say was that rent may not come close to covering his monthly payment. I know that with some of my friends that is the case. In my case it was a difference of around $2000 a month. That’s a lot.
If you they are going to go the rental route, they need to get a professional property manager. The rental business is not for the weak of heart. I have been a slumlord for years and I have seen novices rent their homes and get totally screwed in the deal. Damage to the property and not getting rents on time or at all. Tenants need to be heavily screened and held accountable. There are tenants that just go from place to place looking for weak landlords. Trash the place and don't pay rent. They then move on to the next place when the sheriff shows up for eviction. I don't care how clean the people look when you meet them, they will screw you.
The average professional manager gets 10%, but you make that up in the speed in which the place is rented and maintenance costs. I don't know what the requirement for PM are in AL but a chat with a local Real Estate agent can help screen to find an honest one.
We also live in Alabama, have 2 mortgages because my husband’s job relocated us. We rent a house, but get $650 less than the mortgage amount. It is killing us, because this is money we could be banking and saving, also I am in need a newer vehicle soon and can’t do it financially. However, that being said we are hanging in. Still have the home listed for sale with the renters in it. They have us between a rock and a hard place and know it, but I am still not @ the place where we walk away. When we first put the house on the market, the market was hot. Unfortunately Obama had put that stupid “stimulus” in place to hand out $8,000 for home purchases. Went to new, green homes so our home which was built in late 90’s was not considered green. People were building homes in the area instead of buying, and the value of our house went down. :( 2012 cannot get here soon enough!