Hello,
This is my first post on an online forum. I have to make a decision fast and am hoping for the wise advice. I fell into landlording when I started renting out my then primary residence after a move in 2014. The real estate in question is a NYC coop which I had since 2010 and lived in until 2014. I was told by a real estate broker (confirmed by an accountant) there is three-year window to sell the apt. without paying taxes on appreciation. The apt. became suddenly vacant and now I am presented with a choice to either sell or find new tenants. The three-year window expires in March 2017. Here is the financial picture for the apt.:
Purchased in November 2010 for $208K, put 20% down, current mortgage balance is $150K at 4.375%. Spent $50K (foolishly) on renovations, bringing my out of pocket cost to $91,600. I lived there until February 2014 and started renting the apt. from March 2014, .
Monthly expenses:
mortgage: $832
maintenance: $490
sp. assess. $150
sublease fee $41 (assessed annually as $490)
insurance $21
Total monthly expense $1,534. Rent has been $1,750, so positive cash flow is $216 a month (about 2% return on almost $92K initial investment). As mentioned, the apt. is now vacant and probably will be for a few weeks, depending on whether I decide to sell or rent again. I am most likely losing out on August rent. Projected new rent is $1900-2000.
Comps in the building and in the area have been $300K-$350K and according to my broker, I can expect to sell for a price in this range. I don't know if I am including enough information for a complete analysis, but please let me know if there are other factors in play.
Please help and thank you very much.