Rent or Sell?

[shanaling]

Market Value: $565k (2021)
Original Purchase price: $520k (2017)
Original Mortgage Amount: $366k
Interest Rate: 2.875
Mortgage Term: 30 years
Term remaining: 29.5 years (just refinanced)
Amount remaining on mortgage: $260k
Gross Rents: $2600/mo
Principal and Interest (the P&I of your PITI - should match with the above info): $1087
Taxes and Insurance (the T&I of your PITI): $590
HOA costs: $299
Deferred maintenance notes: N/A
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.): N/A

[PMJL34]

Sell. End of story.

Best of luck!

[Omy]

Sounds like a sell to me, but I'm not a great example either. My rental numbers aren't great, but I'm keeping them for now because both properties have solid renters and the net rental income covers our basic expenses. When they leave we will likely sell one or both properties:

Combined value $700k
No mortgage
Combined Taxes and Insurance $700/mo
Combined HOA and condo fees $400/mo
Upkeep $100/mo
Gross rents $4100/mo

[Papa bear]

A million % sell. That is a renters market if I’ve ever seen one.  Don’t even consider renting it.

For comparison, a property meant as a rental in my metro area at 560k would rent for around 3500 - 4000 a month (big 2 unit) .  Still overpriced.   A nice 2200sf 4Br sfh at 425k would rent for 2600.  And that’s absolutely terrible for rent returns. 

These are all bonkers prices and make no sense as rentals. 

Sell it. 


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[shanaling]

Yea... this is in California... we don’t really see those numbers unfortunately. Sounds like a definite sell.

[clarkfan1979]

A million % sell. That is a renters market if I’ve ever seen one.  Don’t even consider renting it.

For comparison, a property meant as a rental in my metro area at 560k would rent for around 3500 - 4000 a month (big 2 unit) .  Still overpriced.   A nice 2200sf 4Br sfh at 425k would rent for 2600.  And that’s absolutely terrible for rent returns. 

These are all bonkers prices and make no sense as rentals. 

Sell it. 


I have a 4 bed/2 bath in a college town that rents for $2500/month. It's worth about 410K. I have a $261,500 mortgage at 3.5%. I just refinanced it. My PITI is $1466 and I have $411 going toward principle.

Over the past 12 years, rent has increased by $1200/month, so roughly $100/month per year. I have averaged 0% vacancy over the past 12 years. Capital expenses have been low because I rehabbed the house when I first bought it. I'm pretty far from the 1% rule, but I am happy with my overall returns and the amount of time it takes to self-manage, which is around 20-50 hours/year.



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[waltworks]

Everything always appreciates at *minimum* double digits a year (amiright?!?), so you should hold on.

If you do sell, put it all into BtC, GME, and baseball cards.

Man, the everything bubble pop is going to be f'ing epic when it happens. I might not have enough cash left to snap up any deals with all the popcorn I'm buying...

-W

[PMJL34]

Clarkfan,

I don't get why you even posted your comment? You had a primary that you converted into a D+ rental. Then you benefited from the longest bull market EVER (you also bought at an all time low and are enjoying the all time high property prices) + you are also enjoying all time low interest rates that just keep dropping....and even after all this 12+ years of  luck, you now have a C+ rental. 410k home for $2500 is nothing to brag about, especially if it took you 12 years to get to this point.

How on god's earth can you recommend someone keep a 565K valued townhome/condo for $2600/month?

There's going against the grain, but you are just giving terrible advice.   

[waltworks]

Some friends of ours are currently renting an $800k townhome for $2000/mo, so it could be worse!

-W