Indianapolis condo sell or rent

[Anthony W.]

Hi all I currently own a 2b/2ba 2000sqft condo with attached 2 car garage in 46220. Plan has always been to rent it out but starting to lean towards selling due to appreciation and increasing HOA/property taxes. Would love to get other thoughts.

Bought in 2020 for 270-280k range. Recent sells in complex have been around 330k. My unit has new vinyl flooring, bedroom carpet, kitchen granite, and newly painted cabinets. All which I have not seen in other units. 

Reasons to sell: 250k left on mortgage and hopes to sell around 340k range. I am moving to AZ for work and would need to hire a management company which I would not be able to check in on. HOA already in mid 200s/mo. Property taxes will go up another $200 once becomes a rental vs primary residence. My estimation is best case cash flow will be around 200-300/mo. With interest rates rising maybe this is the top?

Reasons to rent: cash flow 200-300/mo. Hopeful continued appreciation as I love the Indianapolis market. However do not love condos with high property taxes and HOAs. In very desirable area where no other complex nearby has a pool and/or attached 2 car garage. Could cash out refi but my original loan is 3% and if I cash out the max to get another property my monthly payment would increase and eat up the cash flow to potentially just a breakeven point.

Would love others thoughts. I do like the thought of continued cash flow while others pay down the mortgage however it would be my only property in Indiana and I would be unable to manage it myself or check in on management companies. Though 200-300/mo cashflow is nice I feel the better play is to sell and hopefully collect 50-70k to use to acquire other properties.

[Greg Scott]

I agree with your assessment of condos as rentals.  Your return on equity is not great at $200/mo.  I'd sell and buy a SF rental.  There are MANY great SF rentals in Indy suburbs.