Keep rental property?

[Benjamin Haberman]

Hello, I purchased my first primary home in May of 2009. Just bought a new primary in April 2014 and kept our first as a rental property. I'm just trying to figure out whether or not it's worth keeping this house As a rental. I paid $170 and it barely has appreciated since we bought it. I might be able to sell it today for around $175. Taxes, insurance, principal/interest-$1230 I have a great tenant paying $1300 If you factor in repairs and vacancy- I'm losing money. :( I owe $150 and that's not enough to bring 20% equity for a refi. The only positive to this property is I went in front of zoning 5 years ago to get the property approved for a duplex. But to put up a mirror image of house attached I would be spending $100 k and needing to out of pocket 25% which would make it not even worth it in regards to cash on cash return. I'm just starting to question my self if I should be keeping this rental property around or get rid of it and continue acquiring properties that are cash flowing more (a lot more) Any opinions/thoughts would be much appreciated. If I need to sell it, I want to do it now as opposed to later. Thanks!

[Bradley Behr]

This isn't really advice, just information that someone else is in the same boat as you. Additionally, my opinions are that of a relative novice and are just that, my own!

Purchased condo in Jacksonville, FL as primary in 10/2009. Purchased new primary residence 03/2013. Carried the double mortgage payments a while then then got a tenant in 10/2013. Renting for $1,050.00/mo, covers all but $88.00 of PITI and HOA fee.

So far we have been lucky and no repairs or issues came up.

We are hoping to sell it before mid-2016 at a profit to skip capital gains taxes, as we do not feel comfortable with a condo due to the HOA horror stories and we are worried it's just a matter of time before a large assessment is needed. No basis for that opinion other than being a pessimist.

Long story short, we are just viewing the $88 as reasonable payment due on a second property.