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Updated over 6 years ago,
Should I rent or sell my house?
Hello all,
New member here. I just found the website researching some stuff related to the issue below. I recently moved (not far, just found a house I like better). That leaves the question of what to do with my former residence. I was looking for tax deduction information, and found bigger pockets. I've been doing some additional reading here, and refining my list of inputs based on what I've learned so far. I guess I'll give some specifics since it will probably be additionally helpful. I would be grateful if you experienced landlords could let me know if you see places where my numbers are obviously jacked up.
-The rent number is a couple hundred under the Zillow estimate... hopefully slightly conservative.
-Using the "50% rule" (that was a new one on me) I just split those anticipated operating expenses evenly between repairs and maintenance.
-The mortgage is currently less than the number shown, but I'm anticipating a tripling of the property tax if I don't sell, so I assume it would go up to something close to the number listed.
-IF my numbers are right (and hopefully I can refine them here) if my yearly cashflow on average is right at zero, is it worth the headache just for the equity appreciation? I'm not in an area where the property prices move much, so it would mostly just be my mortgage balance shrinking over time. If I sell, I'll probably clear around $60k in equity out, that I could put into easier market investments, or whatever else.
Thanks for any input.
Income Item | Monthly Income |
Rent | 1500 |
Mortgage interest write off | 100 |
Depreciation write off | 113 |
Property insurance write off | 23 |
Repair expenses write off | 93.75 |
Maintenance expenses write off | 93.75 |
HOA write off | 10 |
Utilities payments write off | |
Property management write off | 37.5 |
Legal/Professional fee write off | 0 |
Vacant time write-off | |
Total Projected Income | $1,971.00 |
Other benefits: | Continual increase in equity via property appreciation and reduction in loan balance. |
Expense Item | Monthly Expense |
Mortgage (includes property tax and insurance) | 1027 |
Repairs (ex plumbing, AC) | 375 |
Maintenance (ex yard stuff, light bulbs) | 375 |
HOA | 40 |
Property Management | 150 |
Legal/Professional Fees | 0 |
Total Expenses | $1,967.00 |
Other: | After three years, loss of tax-free profit on a sale. |
Estimated Monthly Cash Flow | $4.00 |