Author Topic: case study- planning on selling, finally, have been renting it out for a decade  (Read 566 times)

monarda

  • Bristles
  • ***
  • Posts: 384
We lived in the house 2006-2008.  We've been renting it out since then.

Market Value: 160-170K
Original Purchase price: 130K
Original Mortgage Amount: 104K
Interest Rate: ARM, currently 5.25%  varied between 2.7% and 6% over the years.
Mortgage Term: 30 years
Term remaining:17
Amount remaining on mortgage:78K  (made some lump sum paydowns when interest rate was high)
Gross Rents:1200
Principal and Interest (the P&I of your PITI - should match with the above info): 550 monthly
Taxes and Insurance (the T&I of your PITI): 4000 annually
HOA costs: none

needs a roof. 160-170K price window is as-is condition.
$3300 special assessment (significant street work done last year)
We put in a new kitchen and a new furnace over the years, as well as significant energy efficiency improvements. Including all of this, the 50% rule was pretty darn accurate.

I think we'll do okay in the end considering cash flow and sales price. We're thinking about how to go about calculating what's the lowest acceptable price if we get a lowball offer. We can rent it again pretty easily. But we'd like to unload it.


nwnative

  • 5 O'Clock Shadow
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  • Posts: 4
Don't forget that you will have to recapture your depreciation, even if you didn't claim it as an expense.

monarda

  • Bristles
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  • Posts: 384
yep, total depreciation is about 40K. But that's on next year's taxes.

monarda

  • Bristles
  • ***
  • Posts: 384
Going to meet with realtor tomorrow and touch-up paint and do whatever else his eye sees.