Hi all,
So about 7 years ago I bought my first house for $220k. I do think I overpaid, and needed a flood insurance. I estimate $200k for current value (market hasn't been very good for me hehe), or at best $220k.
1180 sq/ft, 3 bed, 1 bath
7 years later, making extra payments and one refinance later in 2016 (30yr @3.75%). My monthly payments are about $1220, and looking at comparable rental listings I can rent it out at $1650-$1750.
Rent Expenses mo yr
Rent $1,650.00 $19,800.00
PITI -$1,219.67 -$14,636.00
Rent Insh (addl) -$17.00 -$204.00 -increase in insurance because of converting to rental
Vacancy (6% of rent) -$99.00 -$1,188.00
Maintenance (6% of rent) -$99.00 -$1,188.00
Sewer -$29.17 -$350.00
NOE -$1,463.83 -$17,770.00
NOI $186.17 $2,234.00
1% Rule 0.7755
I feel like I have already taken a hit with the house not appreciating or staying the same price (even with some improvements), and the only way to really get anything out of it is to wait more time. Also I get to dip my feet into landlording and can maintain the house myself since I will be local.
Wife and I have been saving for a downpayment on a new house and would like to get a bigger house (1500sqft+, 2 car garage, 2 baths) in the next year. We are also ok living in the current house for a few more years, but we have about $70k for a downpayment/closing sitting in a very mixed cash/bonds/index allocation (index funds are about 10%). So that $70k is not doing anything at the moment.
So what are your thoughts?