Hi all,
Followed for a while, but first post. =)
I'm a numbers guy, so I'll get right to it as I'd love to hear your feedback about our rental home situation:
Current Market Value - $480k-$490k
Purchase Price - $410k in 2010 (new construction)
Current Mortgage Amount - $355k on a 30 year fixed at 3.375% (refinanced in 2013)
Rent - $2400/mo.
Mortgage Payment - $2200/mo. (about $1000 interest / $600 principal with remaining going to taxes (~$490 & Insurance $60)
Self manage the property
+$2400/yr. rent
+$7000/yr. principal pay down
+$15000/yr. @ 3% appreciation
+tax write-off
-expenses (new house, so don't really have any besides low HOA & sewer capacity charge, will have paint, carpet, etc.)
The house is about 30-40 minutes from Seattle and the market has been nuts over the past year - more so closer to downtown, but the appreciation has been quite strong since the beginning of 2013. My wife and I moved out of state (Maui), however, with wife's work, we are back for several months of the year. We have had the same family as tenants in our house for the past 2 years and they are awesome. They had inquired about potentially purchasing the home, however, they're still up in the air and deciding what to do with their rental, so still waiting on that possibility. Without getting into too much detail, I feel good about tenants (hopefully stay long-term), have a great rate 3.375%, and have captured some appreciation over the past couple of years. Strictly looking at the numbers though, it seems like the only thing making this resemble a good investment is the appreciation that we've had. If the market gains 3% as opposed to what it has been recently, does it make sense to keep renting it out or should we try to sell to our tenants? Any help or guidance would be greatly appreciated. =)