I've been having a hard time deciding what to do with this.
I own a Condo in Reston Town Center (VA). I bought it for $350K. I could probably sell it now for $300-315K.
Here's a similar condo for sale: (not mine, but same model).
http://www.zillow.com/homes/for_rent/Reston-VA-20190/house,condo,apartment_duplex,townhouse_type/65731573_zpid/66276_rid/days_sort/38.96124,-77.357692,38.956001,-77.366382_rect/16_zm/?view=mapMortgage PITI = $1530/month (~$250K remains on mortgage)
HOA dues = $330/month
Rental income = $1600/month
Monthly loss =
($260)considerations:
1. Metro station recently opened 1 mile away. another metro station 2 blocks away is slated to open in 2018. This development seems to be spurring quite a lot of growth for the station 1 mile away. I expect even more growth when Metro comes to the Town Center, as it was designed to be a walkable urban core with interesting retail and restaurant/night life.
2. I currently live in a 4 floor row house. Due to genetics and a recent accident, I expect arthritis may make living in a row house uncomfortable within the next 10-15 years. Having a less expensive place to return to has been kind of a "plan B" for me. I have no plans to move back there within the next 5-10 years though unless something catastrophic happened.
3. I have a great tenant who keeps the place immaculate. He's been there for 3+ years and I've never raised the rent.
4. If the tenant decided to leave, I think I would put the place on the market. But I feel like I've got a good thing going right now while I'm waiting to see if the market will ever recover to the price I paid for it.
5. The thought of another problem (plumbing, etc) makes me nervous and I hate having to hire workmen for maintenance/etc.
6. The condo is now 9 years old. I suspect some expensive things may start to break. I hate the thought of losing even more money on it.
7. Everyone - EVERY.ONE. who knows the area or who lives there says "never sell it".
Can they be wrong? Is it really going to explode in price? If I could get back what I put into it, I'd gladly be rid of the stress. Why do so many people (especially the ones that live out in that area) love it so much?
I felt like I had a good plan 2 years ago -- to get a renter and wait out the market, but I feel like the market has now recovered from the GFC. Any further growth would be attributed to the metro accessibility. Will the value continue to increase?
Specifically, here are my questions:
Should I wait a little while longer and then sell?
Should I wait until I know my own health situation to see if I'll need that place for myself again someday? It might make a good retirement home base once it's paid off.
Should I wait until the tenant decides to move on and then reassess to see if I'm comfortable being a landlord with another tenant?
Should I increase the rent immediately? If so, how much without risking him leaving?
6.