Hi,
I’m considering selling my rental unit and could really use a second set of eyes. I feel I could sell this place and invest the cash in vanguard indexes and do just as well, with less emotional toll.
Short story:
We’ve rented our first house out for the last two years. We’ve had a great tenant, but it’s emotional, getting costly and maybe time to sell. After all expenses are paid, we make $100-200 per year so far.
The house is on the fringe of a ghetto (why we moved) in a rust-belt city. The neighborhood could go up or down.
I feel I could sell this place and invest the cash in vanguard indexes and do just as good, with less emotional toll.
Facts:
Market Value: $69,000
Original Purchase price: $64,500
Original Mortgage Amount: $51,200
Refinanced amount: $47,325
Interest Rate: 2.99%
Mortgage Term: 15
Term remaining: 13 years
Amount remaining on mortgage: $42,113
Gross Rents: $725 / month; 8,700 / year
Principal and Interest : $326.60 / month
Taxes and Insurance: $1912 for taxes + $579 for insurance = $2,491 annually
HOA costs: $0
Deferred maintenance notes: I’ll need a furnace and carpet in the next couple years - $5,000
Management fee – 10%. We live about 100 miles away and this city requires we have a manager.
This was our first home and we refinanced two years ago. The refi costs were about $1,000.
Long story:
Over the last year we’ve had a lot of service calls for little things like leaky faucets and running toilets. Each of these is about $100. We had to buy a new water heater too which cost $1,200. This is very frustrating for me because it’s stuff I would have fixed myself for much less cost. We’ve eaten up about 18 months of what I had budgeted for maintenance. The furnace and carpets will need to be replaced in a couple years. This was my first house and it’s precious to me.
The house is on the fringe of a ghetto (why we moved) in a rust-belt town. The neighborhood could go up or down.
I feel I could sell this place and invest the cash in vanguard indexes and do better, with less emotional toll.
Thanks for your help.