Questions on property I rent and have mortgage on

[Nick Grenon]

Hello,

I have a condo in NH I bought it for 130k in 2004. Then in 2012 I started renting it out and bought the house I live in. Then in 2013 I refinanced the condo for a lower interest rate (3.5 from 6.84when bought in 2004). I currently owe 56k( mortgage will be fulfilled in Sept 2028) on the property with my mortgage with insurance and property tax is 917 a month and the HOA fees are 300 a month. I rent it long term rental for 1000 a month and current market value is around 115k for the condo.

Do I use the equity in the condo to buy another property or sell and then buy another property.

I would ideally like to buy somewhere south where it is warmer.

Thank you

Nick

[Bill B.]

I don’t like that 3% of the value and a full 30% of your rent is going to the Hoa. And a value 10% lower than it was in 2004 doesn’t speak to an appreciating market. I’d sell but if you don’t set up a 1031 exchange you’re not going to walk with much cash after depreciation recapture.