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Updated almost 4 years ago, 01/12/2021
Moving out, should I turn my primary residence into a rental?
3 BR/2.5 BA condo.
The cap rate and cash on cash return I am calculating is negative. Using a vacancy of 8.3%. My loan to value is 73%. I am being very conservative with my numbers (thinking of difficult scenarios). Moving out of state and will be purchasing a new primary residence there. Appreciation in this market is probably around 6%.
If I sell, it’ll be after owning the condo for 1.5 years.
Very new to this- hope my question makes sense.