Moving out if Atlanta (Alpharetta). sell or rent?
I am moving out of Atlanta to Seattle. I don’t intend to come back. I have a townhouse worth $240k. Rent would be $1500??. Market estimate is $1750 rent. Should I sell or keep? 100k in mortgage (3.25%). This is very similar house in the neighborhood. https://www.zillow.com/homedetails/13300-Morris-Rd-UNIT-132-Alpharetta-GA-30004/2083802213_zpid/ Don't want to share my exact house. #atlanta #alpharetta
Can I see pictures of it? I’m looking to move to that area.
This is near similar house in the neighborhood. https://www.zillow.com/homedetails/13300-Morris-Rd-UNIT-132-Alpharetta-GA-30004/2083802213_zpid/ It says rental value 1750. I don't want share my house address here.
that's only a 4% cap rate. I'd probably sell
Thanks for the reply. What is cape rare? What it means?
Cap rate is the cash yield if you rented the property out after all expenses, excluding mortgage costs. So take the annual rent you expect and multiple by about 0.6 to account for vacancies, repairs, etc. Now divide that number by the value. That's your cap rate. 4% is not a good cap rate. If you expect the property to appreciate in value rapidly it may be okay. It's not a horrible cap rate, it just likely isn't a great place to invest unless the property appreciates much more rapidly than average.
What company in Atlanta do you work for?
No name company. They are not recruiting anyone even when people leave.
The caprate is low. Do you have a mortgage on it?
Updated the post. 100k mortgage (3.25%)
Keep the house imo if the house is in good shape and doesn't need too much maintenance soon. You'll be cash flow positive I believe. Keep the house for the long term. If you are out of town hire a good property manager.
You have a mortgage? What's the rate on it? Property management takes say, 10%. That leaves you at $1170 a month, and doesn't consider occupancy rate. Does that cover mortgage, taxes, HOA, and maintenance? What opportunity cost do you incur by not cashing out and doing something else with the proceeds?
Thanks for the reply. I haven't did any math yet. This is similar house in the neighborhood. https://www.zillow.com/homedetails/13300-Morris-Rd-UNIT-132-Alpharetta-GA-30004/2083802213_zpid/ It says rental value 1750.
Keep. I'm doing the same thing. It's a good source of income.
Sell
Sell and cash out..you are at peak of house prices and if recession hits, the prices will likely tank in Atlanta..you are better off owning a property in hotter real estate market like Seattle rather than Atlanta, where prices will tank more steeply than Seattle. Even better sell at peak in Atlanta and buy in Seattle when recession hits.
Yes if you are willing to leverage. It ain't cheap here in the Emerald City!
Find a property management company. Also why do you think rent would be 1300 where comparable rents for $1750
I need to do my math. I roughly removed tax, insurance and other costs. But I am way off. Updated post with market value now.
Keep. Good source of passive income.