I was hoping to get some feedback on whether to continue renting, or sell, my former home and now current rental property. The property is a condo located in Manhattan which has appreciated ~30% in value over the last 2 years. I now currently live out of state. Any input would be appreciated!
Market Value: 475k-500k
Original Purchase price: 410k
Original Mortgage Amount: 357k
Interest Rate: 5.4%
Mortgage Term: 30yr fixed
Term remaining: 25yrs
Amount remaining on mortgage: 329k
Gross Rents: 26.4k / yr
Principal and Interest (the P&I of your PITI - should match with the above info): $2026 / month
Taxes and Insurance (the T&I of your PITI): $150 / year (*The property is tax abated for the next 10 years)
HOA costs: $5052 / yr
Properties all around the country have been appreciating a lot since 2010, as they have pared the big losses during 08-09.
Over the long term, RE barely keeps up with inflation, so the lion's share of your long term gain will come from income. Places like NY/SF will probably see somewhat above average appreciation, but it should not be significant.
I have a condo in Atlanta that also appreciated significantly since 2012, which I purchased for $90k and Zillow values at $145k now. My point is, you didn't do anything magical... there was a lot of undervalued RE over the past few years, but the
next 10 years are not likely to see the same kind of spike... at least, not IMO.
The reason NY real estate is seen as a "good investment" is primarily for rich folks. If you had $500k sitting around, your condo is a much better investment as it is very likely to hold its value well over a long period of time and will provide a bit of income to pay you to wait. $20k net earnings on a $500k property is 4% cap rate, and relatively safe compared to other investments available.
This is my long winded way of saying: Sell, unless you plan to move back, or wish to keep property in the city for some other reason. Just know that it will cost you a few $ grand per year to hold onto it in cash, but if you can afford the hit to your cash flow, then it's not likely to hurt you in the long run.