| Sell my rental or keep it |
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Publius
Preferred Member
Cash: $ 31.00
Posts: 151
Joined: 12 Oct 2012
Location: Georgia
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| Sell my rental or keep it |
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Hi. Here are the relevant facts:
1. House purchased in 2004 for 155k and currently owe 124K at 3% on a 5-1 ARM. The house is currently worth ~165k
2. Mortgage payment is 863/month (670 mortgage, 94 insurance, 96 tax)
3. We moved two hours away in 2010 and purchased a the house we live in now.
4. Have had a tenant in since September 2011 paying 1200/month rent. I use a local management company that charges 10%, so net 1080/month. Their lease goes through next August.
So my question is, do I plan on selling it when the lease comes up next year, or continue to rent it and wait for market to come up more. It is currently generating a little bit of money monthly, but with issues coming up every few months, the only real benefit is that the tenant is paying the mortgage. We are in a very good financial position and I am not worried about handling both mortgages if I had a problem with the tenant, but I want to know what is the best use of my money.
Thanks in advance.
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Fri Oct 12, 2012 9:38 pm |
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Publius
Preferred Member
Cash: $ 31.00
Posts: 151
Joined: 12 Oct 2012
Location: Georgia
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Thanks for the reply. To answer a few of your points, we have investments other than the houses that are a diversified mix of equities mostly. I would like some real estate in the portfolio in the long term, and I suppose I was wanting to know opinions on how the numbers shake out compared to "good deals".
If I were to sell and realize cash in the neighborhood of 40k or so I would probably simply add it to my current mutual fund mix. I am rather engaged in my investments and do like the idea of being a landlord, though the distance from this one makes having a management company nearly a must. The cash flow is nearly a wash, so that isn't much of a consideration at this point.
So, I suppose the ultimate question is can I likely be doing better than these numbers with another property? I live in the Atlanta area now, so there is a very wide number and type of properties available so opportunities certainly abound that wouldn't necessarily require a management company.
So yes, if you could point me to the specific situation where I will maximize my return, while realizing the least amount of aggravation all while saving me on taxes and getting me a better nights sleep. That's not too much to ask, is it? 
Kidding, of course, but the conversation is of interest.
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Sun Oct 14, 2012 3:52 pm |
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