Next year I will be retiring out of the Military. We currently own two rental properties from previous duty stations that we held onto (partly out of desire and partly out of not being able to sell without a huge loss due to the crash). With the shift in jobs we started thinking about potentially selling one of the properties and using the proceeds from the sale to pay off the second properties so we can reduce our mortgage obligation and generate more income. Below are the stats on the two properties...
MD house we are considering selling:
Market Value: Zillow has it at $235k, but it is a unique property (separate mother-in-law suite) and I think would go for a bit more
Original Mortgage: We paid $290k for the property, and the current mortgage's original amount was $217,414
Interest Rate: 3.5% Fixed
Term: 15 year
Term Remaining: The last payment would be December, 2027 so 11.5 years or 138 payments
Amount Remaining: $176,365.55
Gross Rents: $1620 ($1,800 - 10% management fee...we might be able to get rid of the management as we live a bit closer to this property now)
P+I: $1,554.25
T+I: $277.17
No other fees.
FL Rental
Market Value: $184k
Original Mortgage: We paid $149k for the property, and the current mortgage's original amount was $126, 034
Interest Rate: 2.875% Fixed
Term: 15 year
Term Remaining: The last payment would be September, 2027 so 11.25 years or 135 payments
Amount Remaining: $99,418.46
Gross Rents: $1350 ($1,215 - 10% management fee)
P+I: $862.81
T+I: $203.13
No other fees.
The MD house has great long term renters in it that just signed on for another year, and might be interested in buying the property.
The FL house has new tenants in it that are six months into a 12 month lease. They seem like solid tenants and are quick to let the management company know when there is a problem so hopefully this is translating into the property being taken care of.
The thought was to sell our MD house to the current tenants without using any real estate agents so we could get close to what we owe on the FL house. This would get rid of two mortgage payments and start generating some income.
Any thoughts and recommendations are appreciated. Let me know if you need any other information.