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Updated almost 8 years ago on . Most recent reply
Would you sell in DC?
Hey all, I've been renting my condo in DC these last 3 years and the tenants are set to move out... so I'm weighing holding onto it as a rental for long term equity growth or selling and taking the tax-free profits since prior to that it was my primary residence.
I'm on the fence since it's barely cash flow positive before accounting for vacancy and repairs (meaning it's really not cash flow positive). Here's the math:
Estimated home value: $750-775k
Purchase price: $580k (10 years ago)
Mortgage balance: $400k
Mortgage: 30/fixed @ 4%
PITI + HOA: $3,200/month
Expected rent: $3,400/month
I have no intention of moving back and no longer live in the area so management from afar becomes another headache. That said, all the calculators out there estimate I come out on top if I hold it for the long run given appreciation and mostly fixed cost due to the 30/fixed mortgage.
So, would you keep or sell? Thanks in advance.