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Updated over 1 year ago,

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3
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Alexander McConaughey
Pro Member
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3
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Struggling to decide to sell or not.

Alexander McConaughey
Pro Member
Posted

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/Year7.33%
  • Alexander McConaughey
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