All Forum Posts by: Drew Karlberg

Correct. It doesn't cover vacancies but that's always a risk. As for remaining factors, I manage everything myself and since the building is a condo the maintenance is very minimal. I want to sell now and cash out. But isn't there something nice to know that in 12 years I will have 150K (minus any unplanned costs down the road) in equity compared to my 35K now? I would refi but can't now due to the investment status of the property.

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Originally posted by @Account Closed:

I think my move is to put it on the market for sale and rent near the end of the current lease and see what bites first. Philadelphia is a pretty stable market and even with little to minimal appreciation. It's a nice way to force save.

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Thanks @Josh Dillingham:

The property is basically a vehicle for forced savings right now. Each year I hold I gain about 7K in equity and it goes up each year after that (8k, 9k, 10k etc). My current basis in the property is $121K and I think it could sell between 125K and 130K right now.

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Thanks for your thoughts @Greg Scott

I thought about switching back to a 30 yr mortgage. However, since the property is no longer my primary place of residence, I don't think I will be able to get any attractive mortgage interest rates. My experience is that lenders tend to shy away from investment properties.

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I purchased a studio condo in 2013 for 110K in Philadelphia (Fairmount 19130). I refinanced to a 3.25% 15 yr mortgage in 2014. Due to life, I moved out January 2016 and I'm currently renting it out. The monthly rent is $1149. It pretty much covers the mortgage, HOA fee, insurance and taxes. However, it delivers no cash flow and my only return is the equity when I sell. How long should I hold? Is there a general rule of thumb? In 12 years, the loan will be paid off which would result in a significant monthly cash flow. But should I sell now before the next crash? How do I judge the carrying risk? I know the answer varies and depends on the numerous factors so let me know if I can provide any more info. Just wondering if there are any general rules of thumbs out there.

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All Forum Posts by: Drew Karlberg

Drew Karlberg has started 1 posts and replied 9 times.

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?

Post: When Should You Sell a Rental Property?