Author Topic: Sell or continue renting out  (Read 1923 times)

camradal

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Sell or continue renting out
« on: August 08, 2017, 09:22:51 PM »
I've been renting my condo out for the last 5 years (managing it myself for the last year). Now the renters are moving out and I don't seem to have the heart to continue dealing with the tenants. In this Seattle market I could probably either sell or rent it out again pretty easily.
Wondering if I could get some help evaluating this property?

Market Value: 585,000
Original Purchase price: 297,000
Original Mortgage Amount: 287,000
Interest Rate: 2.75
Mortgage Term: 30
Term remaining: 22 or so
Amount remaining on mortgage: 208,000
Gross Rents: 2,100
Principal and Interest (the P&I of your PITI - should match with the above info): 1076
Taxes and Insurance (the T&I of your PITI): 280
HOA costs: 400
Deferred maintenance notes: not much work needed in the near future

waltworks

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Re: Sell or continue renting out
« Reply #1 on: August 08, 2017, 09:25:42 PM »
For god's sake sell it.

Even if you had no vacancy, maintenance, or management costs *ever*, you're making $5k/year on $300k in equity (recognizing that you'll pay some capital gains, depreciation recapture, commissions, etc, of course)!

-W

lhamo

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Re: Sell or continue renting out
« Reply #2 on: August 09, 2017, 01:05:36 AM »
What size and what neighborhood? You could probably charge more than you are in rent. Crazy low vacancy rates right now....
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camradal

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Re: Sell or continue renting out
« Reply #3 on: August 09, 2017, 08:13:53 AM »
It's 1000ft in Bellevue downtown. Could charge more, but probably not by much.
I think we are just going to sell it.

lhamo

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Re: Sell or continue renting out
« Reply #4 on: August 09, 2017, 08:23:48 AM »
Well, in the current market you'll probably get multiple cash offers over asking price. In my zip code average sale price is 110% of asking. Good luck!
Wherever you go, there you are

rothwem

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Re: Sell or continue renting out
« Reply #5 on: August 09, 2017, 08:55:37 AM »
It's 1000ft in Bellevue downtown. Could charge more, but probably not by much.
I think we are just going to sell it.

Oof, yea, I'd ditch it even if I didn't have the equity that you do.  That HOA fee would burn me up, its 20% of your rent roll!

Cwadda

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Re: Sell or continue renting out
« Reply #6 on: August 09, 2017, 09:19:43 AM »
Definitely sell it.

hucktard

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Re: Sell or continue renting out
« Reply #7 on: August 11, 2017, 10:38:00 AM »
Your cashflow vs your equity is pretty bad. I would keep the property if you think appreciation is going to be high over the next five years or so. I am not that familiar with the Seattle market, but I doubt properties are going to continue to appreciate at a fast clip, there may even be a dip in prices. There are probably better returns you can get on your $300K elsewhere.

Bateaux

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Re: Sell or continue renting out
« Reply #8 on: August 11, 2017, 08:17:23 PM »
Sell it!  Take the profit and earn some sweet passive income.
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mountainfamily

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Re: Sell or continue renting out
« Reply #9 on: August 11, 2017, 10:43:18 PM »
Bellevue real estate is going nuts. List it at a price that is slightly attractive and inspires a sliver of hope into weary buyers (575) and you'll get lots of offers. People will just pick a number way over your price and hope they win! (Jaded would-be Seattle buyer here)

camradal

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Re: Sell or continue renting out
« Reply #10 on: August 13, 2017, 09:35:53 AM »
Thanks, everyone. Looks like selling is a way to go.

adamcollin

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Re: Sell or continue renting out
« Reply #11 on: August 23, 2017, 03:59:53 AM »
In such a case, I would suggest you to hire a property manager.
Lone Star Realty & Property Management, Inc

waltworks

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Re: Sell or continue renting out
« Reply #12 on: August 23, 2017, 05:48:43 AM »
Wow, lots of poorly written bot-spam here...

-W

Cwadda

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Re: Sell or continue renting out
« Reply #13 on: August 23, 2017, 08:29:32 AM »
Hi..

The first thing you should understand is whether this property is profitable or not?
At the point when this property is rented out, and you deduct the greater part of the related costs (taxes, insurance, utilities, management etc), will the property deliver a monthly benefit or a loss? If it's a loss, then sell it out.
It takes 30 seconds to determine the property is NOT profitable.

Quote
In such a case, I would suggest you to hire a property manager.
-1
OP, please do not do this. Just sell it.

bigalsmith101

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Re: Sell or continue renting out
« Reply #14 on: August 28, 2017, 04:48:42 PM »
I wouldn't, even for a second consider re-renting your property. Sell it. You'll be much happier for it.
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tralfamadorian

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Re: Sell or continue renting out
« Reply #15 on: August 28, 2017, 08:16:41 PM »
Quote
In such a case, I would suggest you to hire a property manager.
-1
OP, please do not do this. Just sell it.

-2  How in the world would a property manager be optimal in this situation?  Oh wait, that's because you are a property manager.  *rolls eyes*

Cwadda

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Re: Sell or continue renting out
« Reply #16 on: August 29, 2017, 07:39:19 AM »
Awaiting updates from OP