Condo in downtown Bellevue. Keep it or sell it

Facebook rime
May 28 20 Comments

I am considering moving out of my condo and move to a larger place. I can get a new mortgage for a larger place without having to sell my current condo.

However, I don't know what to do with it. I have a 3 br condo in downtown Bellevue. 1000+ sq feet. Worth about 800k. Older building build around 2000-2005.

I think it could be rented for about 3000. Hoa is 600, mortgage 2400

At that price I can almost break even. (Loss may be between 20 and 250 dollars a month). I am considering holding because of all the Amazon people moving to Bellevue maybe it will go up in value. However with so many new condos coming up it may be hard to compete too.

Another option is sell it. After all the fees I would probably end up with a bit over 300k. I could either use that money to buy in full another property with no HOA and rent it or just invest it in something else (stocks, bonds, index fund, etc.)

Thoughts? Advice? We have lived in the condo for more than 2 years.

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TOP 20 Comments
  • Facebook public2
    Rent it for 3500 at minimum.
    May 28 6
    • Facebook public2
      Why unlikely, you set the price lol.
      May 28
    • Facebook rime
      OP
      True. I meant unlikely somebody would pay me that money for it. It would be sweet though
      May 28
    • Facebook public2
      Use rent estimate to get a good idea. Or Zillow + 1000. Demand is high in the pnw.
      May 28
    • Facebook rime
      OP
      Super new modern apartments with same dimensions b/ba go for 3500. After looking around, I think I may get away with 3100, maybe 3200 when everyone from amazon moves at once.
      May 28
    • Facebook public2
      Set it at 3500 and thank me later. Rental market is whatever you want it to be :)
      May 29
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    RE is all about the (un)holy trifecta

    Net income
    Appreciation
    Depreciation

    At break even rental you still have 2 of 3 (and that ain’t bad).

    Minor nitpick: For me, I always do a 10 month occupancy calc (FNM rules) and not 12 months, so you are actually negative cash flow.
    May 28 4
    • Facebook rime
      OP
      Can you elaborate? How can you have appreciation and depreciation at the same time?
      May 28
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      Appreciation-real estate generally appreciates. The rate at which it does differs greatly by area.

      Depreciation - Uncle Sam and Aunty IRiS reward you for capital property put in service of making money. So, every year you get to deduct a portion of the cost of your property as a depreciation. This is of course on top of any Section-179 recapture and not subject to the 10k SALT tax limit.

      Why you ask? Who the fuck knows. Never look a gift horse in the mouth, tho.
      May 28
    • Facebook rime
      OP
      Aah yes. The stuff you add in your taxes when your appreciating house is depreciating wink wink because it is older.
      Got it. So you are saying that i have all but net income.
      Thanks!
      May 28
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      Nope, not wink-wink 😀

      Rental property depreciation is a fully featured benefit of the tax code and has survived multiple tax reforms because the RE lobby is strong.
      May 28
  • State Street Corporation / Acctg
    BBJC58

    State Street Corporation Acctg

    PRE
    Goldman Sachs, Credit Suisse
    BBJC58more
    Rent it out. You should work with a tax guy to get the most out of it. I think you can deduct your time up to a small limit.

    If you think the near term (1-5 years) rate of increasing population is close to your or exceeds your mortgage interest rate, then I would seriously consider keeping it and renting it out.

    Then, in a few years you can sell it at a nice gain that you can use to pay down your new mortgage (for the house you’re buying now).

    Good luck.
    May 29 1
    • Facebook rime
      OP
      That's a very interesting rule of thumb.
      Rate of increasing population in Bellevue is 5.1% , mortgage interest rate is 3.85%
      Thanks!
      May 29
  • Expedia okshmoogle
    How close is it to light rail station? Seattle is turning into a shitshow and construction of retail and office buildings is booming, I’d expect in the 5 years more companies will either move completely to Bellevue or open sizable
    Offices in the area. +the school districts are better. Imo, keep it.
    May 28 5
    • Facebook rime
      OP
      Half a mile. around 10 minutes walking. It's close to the library.

      What about the large HOA and all those new massive high rises. Wouldn't supply outpace demand?
      May 28
    • Expedia okshmoogle
      Massive high rises are super expensive if you want a larger condo and have ridiculously high hoa, upwards of $800 for the last tiny studio I checked.
      I guess it depends on what you get for that hoa
      May 28
    • Facebook rime
      OP
      I looked around and yeah the fancier ones have 900+ HOA. It's crazy
      With the 600 HOA we get elevators, concierge, a party room, an office room and a pretty crappy gym.
      May 28
    • New hqWe60
      do you tip the concierge?
      May 30
    • Facebook rime
      OP
      Mmm no. Never thought of it
      May 30