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Personal Investments • Re: Should I keep Renting or Sell Rental?

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Hi,

I need help deciding if it makes financial sense for me to keep my rental. If I sell it now, I would leave it in treasury/hysa for a future home.

I have been renting it the last 10 years and each tenant has averaged about 2-3 years. It is a 1 bedroom so the maintenance is low and I can usually get it rented out in a month. I purchased it about 13 years ago and it has not appreciated very much and not sure if it makes financial sense to keep the rental.

Current Rent & Expenses:

Rent: $2,225/month
Mortgage: None
Property Tax: $348/month
HOA: $509
Insurance: $25/month
Average Repair and Maintenance: $200/month

Net Rent: $1143

If I sell, I estimate:

Condo Sell Estimate: $480,000 (originally purchased at $340,000)
Agent Commission @4.5% (3% buyer, 1.5% Seller): - $21,600
Transfer tax (State + Local) @1.6%: - $7,680
Escrow: - $3,000
Title Insurance: - $1,500

Net Sell: $446,220
It doesn't seem like it earns enough to be worthwhile.

It also seems like you might have had it long enough to where deferred maintenance on the shared structure might start hitting. How are the reserves?

Don't forget depreciation recapture.

Statistics: Posted by exodusNH — Mon Mar 11, 2024 11:19 pm



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