Market Value: Currently listed for $195,000 with little interest. Likely will need to sell around $180-$185k
Original Purchase price: $198k
Original Mortgage Amount: $189,159
Interest Rate: 3.35%
Mortgage Term: 5 year
Term remaining: 2 years (roughly $1,500 penalty to break mortgage if we sold)
Amount remaining on mortgage: $170,837
Gross Rents: est. $1200/month
Principal and Interest (the P&I of your PITI - should match with the above info): $464.75/month
Taxes and Insurance (the T&I of your PITI): $141/month
HOA costs: $266/month
Deferred maintenance notes: N/A
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.):
The place is 3 years old, we bought as a pre-sale property a few years before that. There's some construction going on in the area behind it but within the next few years will have a view of the houses behind it, not parking lot. We are listing through a Realtor at this point and the commission scheme is 7% on the first 100k and 3% on the rest.
We rent in a different location and don't need the equity out of the place (whatever that equity would even end up being...). We don't plan on living in that part of town at this point going forward. The housing market has slowed down the past couple of years and it's definitely a buyer's market. We are fairly close to the main highway out to some areas that are fairly booming in Alberta. We also have a family member that may be interested in renting the place from us as soon as we give him the go ahead. Would still look to get $1,200 in rent from that arrangement. The place is currently vacant.
Do we take our losses/break even and walk away or does it make sense to rent out either short/long term and see how the market does in the next few years?
If there's anything else that needs to be clarified, let me know! Thanks for any/all inputs!
