Gah!
@Dream168 , I feel I am just hanging out on these boards making the same comments over and over again.
So
FVM: 700,000
Mortgage Balance: 200,000?
Rent:$3,500
PMT: $1,900
HOA: $250
Management @10% $350
Maintenance/Vacancy $200
Taxes: ?????
Revenue: $3,500
Expenses: $2,700
So you make $800 a month, which does not sound terrible. I felt I was pretty conservative so you likely would make a little less with more than $200 a month in maintain. So lets call it $500 a month for simplicity or $6,000 a year ignoring depreciation and taxation. Expect I ignored one major, glaring 800 pound gorilla fact. OPPORTUNITY COST. You have $500,000 in equity in this hose, or half a million dollars! So you are earning $6,000 on a 500k investment does that sound like a good return? Because it is not!
6,000/500,000 = 1.2% return!
So that is terrible, the factors that are harder to quantify are being long distance landlords is never fun. I know tenant laws in Cali can be an absolute nightmare as well as the house is just going to get run down by renters. So in closing.
Congratulations you bought when prices were low, you have made your money it is time to sell high! Take the money to Portland and enjoy life. Nice work Dream168!
I realize this is overly simple and a few facts have been removed to keep it that way, if I am missing any major maths please chime in folks!
Oh and go find a flat fee realtor, save yourself another 20 grand or so!