Overview
In 2007, I bought a single family home. I rented out 1-2 bedrooms while I lived there. Last fall, I moved out and rented the master bedroom as well. Not counting past expenses (sunk costs), it looks like its mildly profitable month to month, but the net proceeds from a sale could probably make me more money elsewhere (invest more in index funds, REIT or other property.) Here are my numbers - what's your analysis?
Current Annual Expenses
Mortgage Interest: $3409
$101,024.37 balance remaining at 3.375%, paying $924.58 / mo, about $285 of which is currently interest.
Property Taxes: $3291
Maintenance: $1560
1% of purchase price estimate; original purchase $155,900
Electricity: $1800
Lawn Care: $500
Sewer/Trash: $594
Internet/TV: $1560
Landlord Insurance: $462
Travel costs: $600
Total: $13,776
Annual Income
Assumes 10% vacancy
Rent: $17,064
Annual Profit
$3288
The home value is likely $160-180k. I'm not sure how much is lost in selling costs, but I might net $45-70k in a sale, which could be invested elsewhere. Assuming $50k, my annual profit is 6.6%.
ETA: "Profit" is $274/mo but I put roughly $640 into principal each month. So is cash flow actually negative?