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Updated almost 11 years ago on . Most recent reply

User Stats

19
Posts
4
Votes
Eduardo C.
  • Homeowner
  • Orlando, FL
4
Votes |
19
Posts

Deciding to sell or rent

Eduardo C.
  • Homeowner
  • Orlando, FL
Posted

Hello all, I am working on downsizing and moving much closer to work which should save me a ton of money.

I am undecided on what to do with my current home.

Analysis

Purchase Price - 200K
Current Mortgage - $185K
Estimated Sale Price - 235-250K

Money is pocket is sold is >30K

Estimated Rent - 1700

Expenses
Principal and Interest - 860 - about 300 goes to principal
Current Taxes w/Homestead - $3,800, estimate $4500 with no homestead
Insurance - 100
PMI - 94.09
HOA - 75
Lawn Care - 45 (would pass on to renter, told is the norm)

Yearly Rental Analysis
1700 * 11 = 18700
PITI * 12 = 16200
Principal paid down = 3600
Maintenance = 3600
HOA = 900
Depreciation = 1500

Net = (18700 + 1500 + 3600) - (17160 + 3600 + 900) = 2140

Concerns
New to landlording
Capital Gains Tax
Low on Time with my current job
Depreciation would need to be paid back when I do sell
Market could tank
Lose the ability to claim taxes and interest on taxes
Force me to keep more money in cash

Rewards
Learn new skill
Market could appreciate
Inflation can raise rent

Look for advice on my numbers and any recommendations.

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