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Updated almost 3 years ago,
Sell for big or keep property for rental income
In FL and have a home I purchased 11 years ago for $89k with $50k loan still. I am on track to have loan paid off in 4 years since I am doing a larger payment towards principal each month. It was my main house but two years ago moved into new home and decided to keep this for renting out. First renters were a nightmare but have a new/current tenant with lease expiration coming up. Market is crazy here so spoke with a realtor I know who advised could list anywhere from $400k-$450k. This would be my final year to take advantage of the tax gains benefit. I am having a profit of about $10k after mortgage, utilities, lawn maintenance, etc. We are wanting to eventually buy another property to use/rent at times but at this very moment I don't really need the money for anything specifically. When I have looked at rent vs. sell calculators and an idea of 10% return in the market I am breaking even in about 20 years if I rent it out vs. selling now and taking the large gain.
Anyone else run into this problem before? I get it being a cash cow just not wanting to be stupid in the long term of things since I wouldn't put the whole profit into the stock market and I don't have another property at this time I would spend it on.