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Updated 5 days ago, 01/04/2025

User Stats

24
Posts
5
Votes
Bruce Reeves
  • Investor
  • Bella Vista, AR
5
Votes |
24
Posts

Sell rental now?

Bruce Reeves
  • Investor
  • Bella Vista, AR
Posted

Playing around with my Excel spreadsheet and got to thinking about selling my rental property in the next few months vs waiting until it's paid off in Jun 2027. 

Have a 27k mortgage balance, sale price est at 415k. Assume break even cash flow while rented which includes a generous $600/mo repair fund. 

If I can park the 388k ($415-27k) for one year at CD rate of 4.5% and then est 300k (after paying cap gain/depr recap) at 3.0% (assume CD rates lower) that interest income of about 24 months net of ordinary income tax is about the same as my current mortgage.

Trying to play devil's advocate and think why selling this year does not make sense. 

Pro - I avoid any future repair expense. Not a landlord anymore after 27 yrs!

Con - lose any possible property appreciation over the next two years. And "if" no significant repairs, lose the 600/mo cash flow. 

Am I missing anything significant in this thought process?

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