I been considering selling my rental condo having learned a lot from the mustachian community. I just seems I can sell this now and find a better property to invest in. What Would Mustachians Do (WWMD)?
Market Value: $290,050 (according to Zillow but seems about right, last similar unit in complex sold for $280,000 on 06/12/13)
Original Purchase price: $215,000
Original Mortgage Amount: $172,000
Interest Rate: 4.875%
Mortgage Term: 30 years
Term remaining: 24 Years, 10 Months (actual time left from extra pymts = 22 Years, 7 Months)
Amount remaining on mortgage: $149,230.97
Gross Rents: $1600 (getting this now)
Principal and Interest: $910.24 (current breakdown, Principal= $296.6, Interest= $613.55)
Taxes and Insurance (the T&I of your PITI): Annual:$2897.64 (Monthly Escrow payment:$241.47), Insurance is $396 per year
HOA costs: $300
Deferred maintenance notes: my guess is about $500 per year in minor repairs and turnover costs (its an old building)
Anything else special or unique: HOA Reserves are very unhealthy due to the poor mgmt of previous boards. High risk of special assessments over the next 5-10 years. I got elected to HOA board and have fixed the mismanagement. My guess is averaged out it takes about 5 minimum hours of my time each month to be on the HOA board on top of the time it takes to be an owner (Not factoring in headache times dealing with complainypants people). One positive is I can keep this unit rented fairly steady. I would estimate subtracting only 2 weeks of rental income each year for turnover. Remember depreciation over the last 5 years along with real estate fees will cut into profit if sold. I did put in about $15k to redo the kitchen after initial purchase.
By the way, this is in San Diego and real estate prices are insane. I would be happy to invest outside the area but remember that does include the cost of a Property Manager as I can't see moving in the next few years. So again, WWMD? sell or keep it? If sold, what to do with the money?