My Bellevue condo generates 400$ monthly cash flow and have 150k home equity with 2.9 mortgage interest rate (30 year). Often I came across renter and property management issues that prompts me to sell the place but same time, I am worried about losing 8-10% sell fee plus 1031/capital gain. Condo is old so I worry about assessment in future. I am looking advise from financial experts. #finance #rental
Need more info. How much principal are you paying down every month? Is your cash flow gross or are you factoring in the maintenance/vacancy/expected cap ex etc?
400$ principal. Net cash flow. I manage rental churn to reduce cost
In that case I’d keep it. You have a low-risk asset that generates ~6.4% + appreciation as return on equity. That’s also tax advantaged as I assume you’re applying all the deductions for depreciation etc. If you do end up selling, at least do a 1031 exchange to avoid paying capital gains.
Why don't you just sell it and buy a better condo with less maintenance? In the sellers market you don't have to pay any fee and if you buy under 1031 exchange then no capital gains taxes either.
And then you have to buy in a sellers market too and deal with high interest rates on top.
Well I learned the hard way a lower cash flow is better than all the hassle you get from shitty condos.