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Updated over 1 year ago,
Struggling to decide to sell or not.
I have a property that is slightly cash flow positive. Originally I was thinking of selling it because there is a lot of capital in it, and I want to potentially use that capital elsewhere. The problem is I can't seem to get over what appears to be an extremely lucrative cash return. I feel like I'm doing my math wrong.
I bought the house in 2019 for about 445k (170k in downpayment/closing costs).
I'm looking at selling it for around 550k. Problems I'm struggling with, do I use the CoC Return of only the sale price, or do I calculate it against the entire amount after paying back the loan, taxes, closing costs etc. The renter's have paid into the equity, does that count toward my CoC return?
I sorta fell into this on accident, and I'm really in over my head. My original plan was to get the money out and use it to potentially buy a cashflowing business, but after crunching the numbers, this seems safer. Any help or advice is appreciated, this is a big step for us.
Numbers look something like this:
Initial Cash in | $170,000.00 |
Purchase Price | $445,000.00 |
Sale Price | $550,000.00 |
Commission | $33,000.00 |
Taxes | $16,625.00 |
Closing Costs | $5,500.00 |
Loan | $257,000.00 |
Profit | $49,875.00 |
CoC Return/Year | 7.33% |