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Updated over 8 years ago,
Sell or keep current properties in Omaha, NE?
I currently live in Omaha, NE and am planning to move to Colorado. I currently have 2 properties, 1 as a rental and the other is my primary residence. I'm trying to decide if I should keep these two properties or sell them and use the equity to buy real estate in CO. We're not planning on getting a property management company because we have some local folks that can help out for minimal cost. Some details on the houses:
Primary residence
Mortgage is a 15 year mortgage (with a 3.5% interest rate), so my payment is a bit higher than if I had bought it as a pure rental. It'll be paid of in 11 more years. As you can see below, the cash flow is pretty bad. However, if this were on a 30 year mortgage, the cash flow would be at least $100 higher.
Monthly mortgage payment: $680
Monthly taxes & insurance: $370
Estimated monthly expenses: $300
Estimated monthly rental income $1,400 (might be able to get more, not sure)
Estimated monthly cash flow: $46
Rental Property
I bought this property without fully understanding the types of deals I should be buying (which is something I'm trying to learn now). It's a 30 year mortgage with an interest rate of 5.25%. This house has had more issues than my primary residence, so the expenses have been quite a bit higher than expected.
Monthly Mortage: $543
Monthly taxes & insurance: $308
Average monthly expenses: $328
Avg monthly rental income: $1237
Monthly cash flow: $90
Overall, should I just attribute these to sunk costs and sell them and use the equity elsewhere? The part that I really hesitate on is my primary residence has a stupid good interest rate. These don't feel like terrible investments but they're definitely not the greatest.