I'm trying to decide whether to keep renting or sell this 2BR, 1BA condo in DC, 3 blocks from the U.S. Capitol. Looking for some wisdom from those who have more experience. Thanks!
Market Value: $530,000
Original Purchase price: $440,000 in 2010
Original Mortgage Amount: $390,000
Interest Rate: 3.375
Mortgage Term: 25 (refi in 2012 for lower rate and shorter term)
Term remaining: 22
Amount remaining on mortgage: $338,000
Gross Rents: $2,725 monthly as of March. Had been renting for $3,000 monthly for 3 years before that, but market is more competitive and tenants left in the winter, a slower time for rentals in DC. Current lease until July 2017, so hope to raise rent by $100-$200 per month then.
Principal and Interest (the P&I of your PITI - should match with the above info): $1,867
Taxes and Insurance (the T&I of your PITI): $333
HOA costs: $150
Property Management fee: $218
Deferred maintenance notes: we are about to refurbish the chimney shared by the four units, so my cost will be $5k. Will probably need to spend another $5-7k in the next 5 years for my share of roof refurbishment.
Life Situation: IRS filing status is MFJ, we live in WA (no state income tax). 25% federal income tax bracket. Rental income reported on Schedule C, although depreciation, interest and other fees typically make the reported income negligible.