Author Topic: Keep renting or sell condo?  (Read 1702 times)

UpstateNY

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Keep renting or sell condo?
« on: April 06, 2014, 06:01:21 PM »
Trying to decide whether to keep or sell a rental Condo I own.

Currently owe: $78,000
Current Market Value: $120,000

In year 28 of a 30 year fixed mortgage @ 3.5%

Current Expenses: $1070/mo

Commons fees $380/mo
Taxes $340/mo
Mortgage $350/mo

Rent: $1150/mo

Without any maintenance expenses or vacancy I'm positive by about a $1000 year. The condo is in an affluent Upstate NY college town. I have never had a problem finding good tenants and have had minimal vacancies over the seven years I've owned the unit. I don't think I can raise the rent any higher at this point.

So....  What do I do - sell or hold?  My master plan is to hold the unit for 15 years more and use the profit as my daughter's college fund. Any thoughts?

Thanks!








arebelspy

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Re: Keep renting or sell condo?
« Reply #1 on: April 06, 2014, 06:14:15 PM »
Sounds like it's basically break even (one month vacancy or carpet replacement or whatever eats up the small profit).  I don't see a compelling reason pushing one way over the other.  You could maybe net 25k after selling costs and taxes.  Do you have a better use for that equity?

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UpstateNY

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Re: Keep renting or sell condo?
« Reply #2 on: April 06, 2014, 06:40:43 PM »
Exactly, just about breaking even. And yes $25k is the number I came up with too if we did sell.

We have no other real need for the equity now, other than investing it someplace else to use for my daughters college fund. Any thoughts on whether there is a better place to put the $25k for 15 years to grow?

And thanks for welcoming me! Long time lurker, finally posting for myself. :-)



Karl

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Re: Keep renting or sell condo?
« Reply #3 on: April 07, 2014, 04:58:23 AM »
New York has a decent 529 fund, age based, option.  You con contribute up to 5 years as a lump sum and, when used to pay for college, withdraw everything tax free.  If you do not already participate, this could provide a good option after sale of the condo.

UpstateNY

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Re: Keep renting or sell condo?
« Reply #4 on: April 07, 2014, 05:49:55 PM »
Certainly an option to consider. Thanks!