I figure about 320k sell price
Guesstimate 6% commissions
After 151k mortgage, that's net about 150k.
As for taxes, almost none. Figure recapture of ~[edit:]$12,000 depreciation... maybe deduct $3k taxes so net ~$145-147k .
After principal, interest, taxes, maintenance, etc. about $322 x 12 = $3864 per year.
After depreciation it's roughly tax free.
The rental used to be my primary residence then we moved for a job. Accidental landlord. The real estate market was going up like crazy so I didn't want to sell. The real estate market is pretty level at the moment. I want to enable FI in approximately 10 years, that's the only goal.
$140k in VTI yielding 2.18% per year is $3052 (minus applicable taxes).
On top of that are any market returns.
I also thought about splitting it up into VTI/VNQ (say around 100k/40k that's 100 @ 0.0218 + 40k@0.0379 = $3696)
or if you go 50/50 on VTI/VNQ ( that's an average dividend yield of 2.985% = $4,172).
Again, not account for any historical returns.
$140k @ 5% return after 10 years ~$228k + ~$37,000 in dividends.
As for the house, if I estimate as increasing in value from here at inflation+1% (say 3% / year) that's ~430,000 (320,000 * 1.03^10). There's about 1000 units for rent becoming available in the next 18 months, most apartments.
If I were to sell I would have to pay full taxes, plus ( I believe) re-capture all the depreciation I claimed for 10 years. Ouch. Otherwise do an exchange or just keep the rental forever. I have no interest in landlording for myself. I'm way more interested in fix (and/or flip).
I'm a little biased against keeping the rental so I am having a hard time being objective with the numbers.
I am optimistic about Longmont in the long term. However, currently, I do not feel the return is good.
If I had not been an accidental landlord I would not have bought the property back in 2014 for rent (~$1400 on 206,000 << 1% rule). So, I think the only reason I have the rental is because I didn't want to sell it after becoming an accidental landlord.