Would you sell this property?

[Ryan Wamsat]

I bought my first house in 2004 for $209k. By 2009, I decided to move in with my girlfriend. At that time, house prices hadn't recovered yet. I was far underwater, so I decided to rent it out instead of selling it. Unfortunately the rents in the area didn't amount to my monthly mortgage... so, I have been taking a $350 loss every month. If I factor in repairs, CapEx, turnover costs, and property management, the monthly loss is $775.

Six years ago, I refinanced into a 15 year mortgage.  I currently owe $93k and have 9 years remaining on the loan.

I recently determined that it would that it'd cost me $28k to sell the house.  $17k would go to the realtor commissions.  $11k would go to repairs, holding costs, and closing costs.  If I sell, I would 1031 into a cash flowing property (or two) out of state and and basically reset the clock to 30 years.

Would you sell this property, or wait out the 9 years?  Why or why not?

Thanks,

Ryan

[Theresa Harris]

You might be resetting your clock from 9 to 30 years, but if you are cash flowing $200 a month rather than losing $350-775/month, you will be $550-$975 ahead each month...use some of that to put towards your mortgage and it will go down quickly.  

Find a mortgage calculator online and see what happens with extra payments or increasing your payments.   I have a 25 year mortgage on one place and doubled the payments.  It will be paid off almost 15 years early.