Market Value: $293,000
Original Purchase price: $293,000
Original Mortgage Amount: $234,000
Interest Rate: 3.25
Mortgage Term: 15
Term remaining: 14
Amount remaining on mortgage: $222,000
Gross Rents: $1,900/month
Principal and Interest (the P&I of your PITI - should match with the above info): $1,660
Taxes and Insurance (the T&I of your PITI): $265
HOA costs: $165
2,700 sqft single family home built in 2005. In a gated neighborhood with really nice pool club, amenities, 10 min from airport, low crime area, walking distance to shopping, growing area, lawn maintenance included in HOA fee ($165/mo). We have a 15 year mortgage on the property. It will be paid off in 14 years at this point. Monthly mortgage payment is $1,660 - $1,000 of this is going to principal. Property tax plus insurance on a monthly basis is about $260/month (let's say max $300 if rented since insurance would go up). We are moving to a smaller living space that will be significantly cheaper. Oh, and we can probably rent the house for $1,900 or so. I'm assuming future property tax, insurance hikes, and HOA fee would be covered by upping the rent (who knows). Now my thoughts are as below, opinions?
So our total monthly cost for having the property (minus maintenance and not counting principal portion of mortgage) would be $1,300 and if we can get $1,900 a month rent I think that is a pretty good spread. If we sell the house we'll pay probably 5% commission on sale which would equate to about $15,000 "expense" just for getting out of the house. I feel like the biggest risk with this setup is that the value will drop to a point where our net-tax rental income minus expenses of holding it aren't high enough to cover the drop, make sense?
Our new living abode will cost us very little so we won't be stretched keeping the house. Any thoughts?