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Updated about 8 years ago on . Most recent reply
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Advice needed on if should rent or sell townhouse in ClearwaterFL
Hi all this is my first post on this site, I am out of Clearwater Florida and getting ready to move into a house I have purchased. My question for you all is should I sell or rent my townhouse. Details below:
I paid 185K for a 3 bedroom, 2.5 bath, 2 car garage townhouse in 2009. HOA fees 240 a month. My loan balance remaining is 150K. My tax, insurance, and mortgage is roughly 1200 a month. Adding in HOA fees will take my cost up to 1440.
I know I can sell it right now for 260K, or I could rent for approx. 1750 a month. I recognize I will gain some tax advantages but not sure how much I will save in that department. My wife and I make a combined 140K a year so we are in a fairly high tax bracket overall.
Any and all advice is greatly appreciated!
-Jonathan
Most Popular Reply
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Sell it, your rent is not high enough to cover your expense costs.
Additionally you have $90 K wallowing away lying dead in a property not earning it's keep. The value of your equity alone is worth $750 per month at a opportunity value of 10%. The property itself will lose money after paying the return on equity.
You will lose money unless your rent is closer to the range of $2200 - $2400/month conditional on you being able to pull out the maximum amount of dead equity first.