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Updated over 7 years ago,

User Stats

6
Posts
1
Votes
Dom Smith
  • Investor
  • Southington, CT
1
Votes |
6
Posts

Hello quick intro/question from Connecticut

Dom Smith
  • Investor
  • Southington, CT
Posted

Hello! Fan of the podcast, finally signed up for the forums.  Quick introduction about myself and looking for the proper forum to repost my question/situation, below. 

I live in the great real estate market of Connecticut and thus, became an accidental landlord when my primary residence (2Bd/1Ba) failed to sell. Instead of taking a big loss on the home, I decided, and was fortunate enough to turn it into a yearly rental after moving to our new, primary residence.  After the winter it will be time to assess whether to take another stab at selling the home, or continuing to rent for another year.  I have about ~40K equity in the rental and owe about $157K on the loan, but the monthly rental income only covers the mortgage payment + insurance + taxes + an additional $75 a month, which I put aside for repairs and anything that may come up.  We're essentially breaking even. We have great, low maintenance tenants, who we believe would likely sign for another year, if we don't decide to sell the property.  We also live close by, so we have the convenience factor in our favor when we do need to get over there.    

The roof, windows and furnace are all about ~10 years old, so while I'm hoping to avoid any big repairs in the near term, every year is another year closer to something that needs to be replaced.  

Since the loan will not be paid off any time soon by solely making monthly payments, does it make any sense at all to continue renting only breaking even, or should I pull the trigger on the sale and take what I can get for it, even if it means taking a big loss from my purchase price in 2010, just to be done with the house? We're leaning toward the latter, but interested in the thoughts/opinions of the community.  Again, my apologies if this is posted in the wrong forum and I will happily move it to another forum, if need be. 

Thanks!    

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