So after reading through some of the Real Estate section, I am definitely not meeting the 1% rule by any means on the rental property I currently have so I'm pretty sure I the right decision is to sell the property, but I want to receive some feedback to ensure that I'm making the right decision. I'm going to provide as many details as possible below in order to receive the proper feedback.
Details:
1) Purchased house in 2010 for $216,500. Put down 20% ($43,300).
2) Lived in the house for 2 years.
3) Went to live in a SE Asia for a year and house was turned into a permanent rental property starting July 2013.
Additonal Details:
1) Mortgage Amount left is: $168, 298. Mortgage payment is currently: $1027/month.
2) Mortgage Term and Interest: 29 years remaining at 3.75% (Refinanced last year)
3) Rent per month after management fees (too far away to manage property): $1426/month
4) Area is near a military base, so finding high quality tenants is very easy. There is usually a maximum of 1 week in between tenants (1 week is for any repairs/cleaning)
5) Houses around the area are selling for around: $225-230K now, so house has appreciated in value.
6) Current tenant's lease is scheduled to end 4/30/2015.
7) Total Repair costs so far during current tenant's lease: $6650 (A/C repair, Fence re-build, A/C repair again, Ceiling Repair, Electrical repair) *Some freak accidents like lightning strikes resulted in A/C needing to be repaired. Did the fence re-build because it was rotting out from previous owner who used cheap fence panels.
8) House was built in year 2003 FYI
9) Yearly HOA is $120
10) Depreciation for house will have been captured for roughly 2 years by the time the house can be sold.
I haven't sold a house yet, so I'm not 100% on what losses I will take other than the 6% sales commission (3% seller agent, 3% buyer agent) and the taxes on depreciation re-capture.
At the end of the day, I'm assuming I'll lose a bit of the equity I put into the house which makes me sad, but I feel like I could invest that money and put it into a taxable account and invest in ETFs/Index Funds and come out ahead down the road (20 years).
Any advice from fellow property owners in whether I should continue forth with selling this rental property or keeping it would be much appreciated. Thanks in advance fellow Mustachians.