Author Topic: Rent or sell case study  (Read 273 times)

nurseart

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Rent or sell case study
« on: April 01, 2019, 02:29:12 PM »
Market Value: 225-235k likely but low inventory in market could take it higher
Original Purchase price: 156
Original Mortgage Amount: 126
Interest Rate: 4.625%
Mortgage Term: 30 years
Term remaining: 22
Amount remaining on mortgage: 92k
Gross Rents: current 1350/month, could probably increase to 1450
Principal and Interest (the P&I of your PITI - should match with the above info): 647.82
Taxes and Insurance (the T&I of your PITI): 206.01
HOA costs: 0
Deferred maintenance notes: upcoming include replacement windows, counters, air condenser. All functional now

Home is in good shape in a highly desirable area/great location of town with a nice yard, deck and some unique features attractive to both renters and sellers. Buyers market. It was our primary residence until 8/2018 and tenants are relocating to a new city when their lease is up.

Reasons to sell:
capitalize on the lack of capital gains
use cash to purchase more property in the city where we currently live (1 hour away).
Property values and taxes are increasing in the area and it seems unlikely that we would be able/willing to purchase in the area again.
Property is in a AE flood zone. Area has had major flooding and nothing has come close to the house

Cons to selling:
Current house offers diversification to the portfolio
We self manage and I'm in town a few days a week for work anyway, haven't minded renting it

Any thoughts or additional things to consider quite welcomed!
« Last Edit: April 02, 2019, 08:33:10 AM by nurseart »

waltworks

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Re: Rent or sell case study
« Reply #1 on: April 03, 2019, 08:48:29 AM »
Take the tax free money and run.

-W