The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: M5 on May 29, 2019, 02:21:36 PM
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Toying with the idea of selling our only rental. We currently have it rented, but the tenant will be changing over in about a month, so perfect timing as far as that goes. House is 725 square feet and was built in 1938.
Market Value: 70-80k
Original Purchase price: 38000
Original Mortgage Amount: 41020
Interest Rate: 3.75%
Mortgage Term: 360mo
Term remaining: 246mo
Amount remaining on mortgage: 32571
Gross Rents: 650/mo
Principal and Interest (the P&I of your PITI - should match with the above info): 190/mo
Taxes and Insurance (the T&I of your PITI): 208/mo
Deferred maintenance notes: DIY'd a new roof last fall, cost ~$3800. Will need all new windows within the next 5-10 years. Haven't done any other maintenance in the 2 years we've rented it out.
We bought this house in 2014 as our first home on a rural development loan (0% down), lived in it for 3 years and turned it into a rental the past 2. When we lived there we also had to sink 5k into a new HVAC system. The house is in Eastern Kansas so it's becoming difficult to manage from 1500 miles away. We don't have the desire to pay a property manager since the cash flow would basically be a wash at that point.
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Sell. If you were local, I’d keep it. And would buy 10 more at 40k to rent at 650!
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Haha yep, not being local anymore is the main reason for wanting to get rid of it. Passive investing with Vanguard is just sooooo much easier.
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100 miles is doable. 1500 is not.
Sell and put your gains in the market. Or if you like being a landlord, start scoping out deals locally where you are now. Though it’s been increasingly difficult to find anything worth even looking at.
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It's not a good rental even if you live next door, because, as you've discovered, maintenance will kill you on low end rentals.
Sell it yesterday.
-W
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It's not a good rental even if you live next door, because, as you've discovered, maintenance will kill you on low end rentals.
Sell it yesterday.
-W
I can't argue with that. If we kept it I'd imagine over the next 10-15 years we'd spend at least 8-10k on new windows, siding, etc., even if we did the work ourselves.