I am struggling with holding and renting or selling a non-conforming condo that was previously my primary residence. Purchased at height of market in 2005 and is now no longer eligible for a marketable FHA backed mortgage.
Market Value 60,000 (Maybe if seller financed. investor will buy now for 40k-50k)
Original Purchase Price 75,900
Original Mortgage Amt 75,900
Interest Rate 4.375%
Term 30y refied to 15y (8y remaining)
Amount Remaining on Mort. 37,429
Gross Rents (annual) 7,500
Monthly P&I 500
Taxes (Annual) 665
Insurance (per year) 450
HOA (per year) 840
Non-conforming property due to concentration of ownership (cash buyers or heavy downpayments). Development filled with retirees (first floor) or young professionals with no money (second floor) and I am on the second floor. Wealthy association, no history of special assessments.
Investors ready and willing to purchase for $45k. Otherwise must hold for seller financing myself. Currently has
long-term tentant that require little maintenance. Original HVAC system (1998) will require replacement in the next 5-10 years
at a cost of 5k-10k. No other major expenses expected. Unit fully renovated prior to converting to rental.
I attempted to review status myself using threads here, but I have several questions. 1) should I use a seller financing market value or an investor's market value to determine ROI? Do I need to include depreciation if future costs of maintenance and reserves are included?
Rent/mo 625 Year
Full Prop? 100%
Months 12.00 7,500
Vacancy 10% 750
Maint 10% 750
Manag. 8% 600
Taxes 665
Insurance 456
Reserves 600
HOA 840
Interest 1,772
Net Income 1,066.75
Equity at Risk 22,571.25
Return on Investment 4.73%
FMV 60,000
Mortgage 37,429
At Risk 22,571