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Updated over 1 year ago,
When to Hold 'em and When to Fold 'em???
Looking for some discussion and philosophies regarding when to continue operating a rental versus selling. Here's a property scenario for consideration:
2bed/1bath purchased in 2019. Owned outright with $63,000 all-in, currently rents at $1200/mo with a current value of $200,000 today.
2023 Performance: $13,650 gross income, $1,650 expenses, $12,000 net. Annual RoR right at 19%.
What I'm having a hard time wrapping my head around is IF the performance is based on asset value versus amount invested, that RoR drops to 6% ($12,000/$200,000). With that level of equity and appreciation, is the smart move to sell the property?
Background: Small town investor, self operator. No local staff or team to lean on for portfolio management, maintenance etc. House is minimal maintenance BUT there are always those random things here and there.