Author Topic: Should I keep or cash out 2 rentals  (Read 524 times)

nsmall

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Should I keep or cash out 2 rentals
« on: January 07, 2019, 10:20:48 PM »
Please feel free to ask me questions.  I am not a troll.  I am no expert.  I am looking for advice.

@waltworks been reading your comments and I am a big fan


Rental #1 bought it for 172k, can sell it for 295k.  Mortgage is 125k at 5%...$1000 and rents for $1820 section 8

Rental #2 bought it for 153k, can sell it for 270k.  Mortgage is 112k at 5%...$930 and rents for $1575 section 8

I sold 2 rentals in the fall of 2018.  These are are my last 2. Both homes were built in the 1980's, both homes have 10+ year tenants. 

I live at the top of LA county in a desert in California. 

I would like to sell them, but I dont know if that is a mistake.

I would like to move to Washington state (where I grew up) in 2-5 years once I can find a new teaching job.

I for sure Dont want these properties once I move so I am thinking it might be a good time to unload them. 

Its nice to have the extra income, but maybe you folks can help me realize its time to cash out as the cash flow is not anything terrific. 

Thanks in advance

FINate

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Re: Should I keep or cash out 2 rentals
« Reply #1 on: January 07, 2019, 11:32:08 PM »
I would like to sell them, but I dont know if that is a mistake.

I would like to move to Washington state (where I grew up) in 2-5 years once I can find a new teaching job.

I for sure Dont want these properties once I move so I am thinking it might be a good time to unload them. 

I would sell. 2-5 years is a short time horizon for RE and now is a good time to sell, or at least in my area it still is.

waltworks

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Re: Should I keep or cash out 2 rentals
« Reply #2 on: January 08, 2019, 08:32:17 AM »
50% rule says you're slowly losing money on both, but CA property taxes tend to be low so you might be making a little bit.

Regardless, I'd sell them ASAP. Mortgage rates keep climbing and IMO the days of meaningful appreciation are over.

-W