Is anyone available to review a case study?
My husband and I aren't sure if we should sell our rental. It's located in the center of Seattle where rent prices and home prices are at an all time high. We want to capitalize on the "hot" market, but do we do this by selling the home or by reaping the rewards of high, stable rent? Also, we moved out of the home a little over a year ago, so if we're going to sell, then we're thinking it would be a good idea to do it before capitol gain taxes kick in. Thoughts?
Thanks so much!
Market Value: $450,000-$500,000 (I put this range because the Seattle market seems to change monthly.)
Original Purchase price: $400,000
Original Mortgage Amount: $375,000
Interest Rate: We refinanced under Obama’s Making Home Affordable program, so the mortgage details are a little funny. We’re currently paying 2% on a balance of $312,528.62 and 0% on $30,979.80. Starting on 6/1/16, the 2% interest will increase by 1% a year until is caps out at 5% on 6/1/19. The 0% interest portion will stay at 0% for the life of the loan.
Mortgage Term: 40 years
Term remaining: 36 years
Amount remaining on mortgage: See above
Gross Rents: $2195 plus all utilities. Our tenant moved in on May 1, 2014. She recently signed a new two year lease that will end June 30, 2017.
Principal and Interest (the P&I of your PITI - should match with the above info): $1044.05 per month through 6/1/16
Taxes and Insurance (the T&I of your PITI): $403.25 per month
HOA costs: $0
Deferred maintenance notes: We pay a gardner $50 a month to maintain the yard. The home is about 10 years old, so while nothing is broken now, we may need to start replacing appliances, paint, etc. soon.
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.): No