Author Topic: Good / bad / moderate, moving and deciding on keeping rental...  (Read 186 times)

dclarke1

  • 5 O'Clock Shadow
  • *
  • Posts: 10
  • Location: BC, Canada
Hi All,

Thanks for reading. My wife and I are planning a move approx. 12 hour drive / 1 hour flight from our current residence in one year from now. (Moving to a different location in BC, Canada). We purchased a rental property one year ago in our current town. We have been doing the management and maintenance on this property ourselves as it's very close to our residence. I expect that after moving we would need to hire handyman / contractors to do the maintenance, and possibly a property manager. I would appreciate any thoughts you may have on whether keeping this property and managing it from a remote location makes economic sense.

Market Value: $350,000
Original Purchase price: $310,000
Original Mortgage Amount: $240,000
Interest Rate: 2.94
Mortgage Term: 4 years
Term remaining: 3 years
Amount remaining on mortgage: $231,000
Gross Rents: $32,400
Principal and Interest (the P&I of your PITI - should match with the above info): $15,852 /yr
Taxes and Insurance (the T&I of your PITI): $2,728 /yr
HOA costs: no HOA but utility and garbage costs of $1,240 /yr
Deferred maintenance notes: Not really any deferred maintenance notes. I budget $3k /yr for maintenance. Should be less most years but some excess will need to be banked for a roof replacement in ~15 years.

Other than that I do like the idea of being diversified into physical real estate. The equity in this property equates to approx. 18% of our income generating assets, which include Canada / US / international index funds, Canadian REITS.