My first post to MMM forum:
I have a 4 plex that was purchased in 2000 (northeastern USA)...I lived there 10 years, raided the equity and bought a single family home where I have now lived 5 years with my lovely wife.
Managing the apartment house has been manageable but I also have begun to long for days without the place...at this point, the place is just something I have had for a while and I feel like need a plan!
In looking at a 1-3 year timeline where I tackle some clean up to prepare for sale in the next few years (no rush, can wait for good market conditions) and am being reminded of capital gains, depreciation recapture and of course realtor and other fees. Strangely, I have yet to find an online calculator that will help figure some of this out.
Do you know of such a calculator?
Here is a scenario, in case someone wants to pontificate on what I might walk with:
year 2000: purchased for $229,000
year 2001: improvements +$30,000
years 2000 to 2010: was living in one unit and claimed 84% of place for depreciation
years 2010-2015: 100% of place claimed for depreciation
estimated value today is $410,000
assuming realtor fee of 6%, what would I clear after selling this property? (include math if you would)I still owe ~230k on the mortgage (not proud but true fact)
Once sold, my thought it to put all proceeds toward primary mortgage, or invest in Vanguard portfolio...
Selling Positives:-Less "open loops" in my brain (where an open loop is something not quite on the tip of your mind that must be thought about and dealt with regularly) Will I be happy and light on my feet once sold?
-Less overall debt
-Taxes are going up more again, and rents are fairly maxed out in the area (feels like it will be tougher to make money going forward)
Selling Negatives-Less cash flow
-Will stop gaining equity
-Big tax hit when selling
-Place is not that much work (80 - 100 hours per year), will I regret it?
-proceeds not enough to pay off mortgage on primary
-does not change new worth in any substantial way, reduces overall debt only[/li][/list]
