$850 a year profit

[Mike McConnell]

Had my house for 2 years, just switched over to a 15 year mortgage.  My house I rent out is on year 1 of a 15 year mortgage.  $107,000 left on mortgage, house is worth $150,000.  I use a service to find renters and take care of everything.  With that said, after service fees, I clear $850 a year.  Would you stick with $850 a year, hoping nothing breaks, or sell.  The 15 year has no pmi so building decent equity in a few years.  What are your thoughts? 

[Joel Owens]

I would not have gone with a 15 year amortization period. Take higher cash flow with  a 30 year amortization and use it for reserves with the property and also additional pay down on the mortgage.

You want FLEXIBILITY and the 15 year doesn't have it. In real estate sometimes it's good and sometimes it's bad and you want to be able to move and shift with market dynamics. Having fixed financing with a higher accelerated pay down isn't the answer to staying fluid at least not for me.

The question to sell and 1031 to something else is how much dead equity you have in the property and where the value is in the cycle for your property. Also can you find a suitable replacement property throwing off the same cash flow or better in just as nice of a location?