I bought this home as a primary residence a year ago. Relocated for job, wanted to rent. Secured a tenant @ $1600/mo.
Would like to transfer the property into an entity, but don't know how to do that cleanly and inexpensively. Numbers are below. I'm a little light on cash at the moment due to heavy investments and timing. Will receive about $10,000 in bonus over the next couple of months. Tenants are moving in a week so help! Is the transfer urgent? What tax implications do I need to be prepared for? Should I draw some equity out on the sale to beef up cash position?
Market Value: $190,000
Original Purchase price:$187,500
Original Mortgage Amount: $127,000
Interest Rate: 3.8%
Mortgage Term: 30yr
Term remaining: 29yr
Amount remaining on mortgage: $125,800
Gross Rents: $1,600/mo
Principal and Interest (the P&I of your PITI - should match with the above info): $600/mo
Taxes and Insurance (the T&I of your PITI): ~$150/mo
HOA costs: $100/mo
Property Manager: 10% of rent, tenant placement commission 75% of first full month rent
HELP!