[USER]

I have rental unit (20 yrs old), for which I paid downpayment of $35k and purchased at $150k @ 3.2%
Condo brings $5k annual rental after all taxes, mortgage, HOA and repairs.

Every year condo is having major expenses upto $2k
Condo has now appreciated by $40K. I ‘m in two minds if I should sell or keep it.

Its remotely managed, have same tenants for last four years.

Seeking advice.

[Jatin]

Sell, it’s not making you even 5%. Put this money in s&p, you will have better returns.

[Molly]

It depends on where it’s located: is the Community growing? New industry coming to the area? New building expected in the area?

The equity will be reduced by sales expenses and capital gains taxes so you’re looking at a smaller amount to invest.

The loan interest rate is attractive and, IF it’s assumable, it might make a sale easier.

[Liz]

get rid of the money pit!!! u can invest 100k in DX and get a 1300 monthly dividend.

which would u rather have???

[Brenda]

I say it depends on your other investments. I own rentals with long term tenants (>10 years). I don’t raise their rent.

It’s not the best business or financial decision in their own, but it’s diversification in my portfolio with a pretty low risk given the situation.

[White]

So, the unit is 20 years old or you’re 20 years into a mortgage?
I feel like I’d want to know

1. Your age
2. Time left on mortgage
3. Thoughts on the appreciation potential.

Is it a typical suburban Midwest condo that has potential or is this one of those wildly fluctuating Florida ones?

[Chad]

What kind of 2K expenses are happening every year? That kind of thing should not happen every year. Or do you have a money pit?

If you’ve got a money pit then it would probably be a smarter choice to sell it.

[Elstad]

The way I look at it is that someone is paying your mortgage. Sure, you’re not making anything out of it now… but in 26 years, it’ll be worth more and it will be a mortgage-free passive income.

[James Maximu]

Is that $5k net after those $2k “major expenses” or is the net actually $3k? That makes a difference.

[Maximu]

Personally, I’m not a fan of condos so my opinion is biased and I would say sell. But it’s sounds like it’s making money and it’s doing well for now.

I would be afraid of the HOA fees and assessments in the future but if they have good reserves and well managed guess it’s not that much to worry about.

You could also sell it to the current tenants maybe

[Smith]

You will lose money when you sell it after you pay your agent, legal fees and transaction costs.

It’s a bed investment is all I can say

[Katherine]

Putting $2k per year back into a Condo for upkeep/repairs/maintenance isn’t huge at all.

Properties have to have stuff done each year and that’s small/average.

I would look at the rent I am charging and look to increasing it.

[John]

Yes, I did made $32,500 copying daily trade Kyle Williams
He’s a genius

[Author]

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