Advice on North Carolina Rental Property

[Ben Miller]

Hello Everyone, I'm trying to figure out the best move on a rental property that is currently yielding a negative cashflow of $200.00 per month. I bought the home (before the crash in 06') in NC when I was in the military stationed near Ft. Bragg. I have a good tenant in the property and over a 10 year period, it never stays vacant for long. I have 10K (or a little more if needed) to upgrade or improve the property and cashflow. Here are the numbers: I owe 175K on the property. 30 year fixed VA loan at 4.25% - never missed payment Property value is about 190-195K Mortgage is $1,197.00 per month. - looking to lower payment Renter pays $1,100 per month - rents took a dip in the area last year Property management fee is $110.00 After mortgage and expenses I get $990.00 per month back. Rents for that area have moved up to $1,300.00 if some basic improvements are made (carpet/appliances) I live in CA and Im flying back in Sept to meet with Agents and property managers. Any advice to improve position is greatly appreciated!!

[Alexander Felice]

Sell it, you can do much better in the same area with a better use of equity. It would need to rent FAR over any BAH levels to be profitable. You're losing more than $200/month in the long run.

You can spend $60K and get a house that brings in the same rent.

I invest in Fayetteville and negative cash flow is completely optional. You're losing money and you don't have to, and that area is absolutely awful for appreciation so you can't make it up in the long run in equity gain either. 

You're never going to make a dime on this house, sell it.