Long Term Rental Property Better to Re-Rent or Sell?
Hi All, I have a single family home that has been a long term rental I am weighing thoughts of cashing out vs renting it again as tenants vacate end of this month.
Overview:
Address: 3960 Pleasant Shade Dr, Atlanta GA 30340 (Have owned for since Nov 2016 and depreciating)
Details: 3 bed 2.5 bath 1,847 square feet (None of the photos online are current)
Principal Owed: $232,000
Mortgage Rate: 3.375%
Monthly Payment: $2,010 + $250 for landscaping and pest control
Current Rent $2,450 a month
Projected New Rent: $2,750-$3,000 a month
Potential sales price $450-500k. The home backs up to a busy road and I think $500k is a realistic hard cap on pricing for quite a while.
I am a realtor myself so I can save on fees but my assumption is if I sell I end up somewhere with $200k that I would then need to pay capital gains taxes on. I can also get a Home Equity Loan from Better Mortgage for another $70k and then sell which would reduce the taxable amount to about $130k
Curious on thoughts from others if you would prefer to try and rent it out again or sell and allocate the money elsewhere. There have been a decent amount of repairs annually and at some point it will need the floors refinished and kitchen redone.