Hi all. Thanks in advance for your time. We own a SFH in a hot neighborhood in Denver. It has always rented quickly in the past, but it is vacant now and we're struggling to find a tenant. Current lease is up 7/1.
We bought this property for $499K as our primary residence in 2008. We decided to keep and rent it out. Our monthly payment is about $2000 (which includes PITI). Our last tenant paid $2750/month. So yes, it generates a very nice cash flow. Problem is that it's OLD and starting to get run down. I think this is why we're now having trouble renting it. Making the updates it'd need is out of the question....it'd be too much investment at this point. Plus, I think it's a matter of time until something major needs repair.
The good news: we can probably sell it for $650K. It's a small place, so I'm not sure it'll ever be worth much more than it is right now. Take away all the taxes and we're likely to net $270K, which we'd use to pay down the loan on our current primary residence mortgage, saving a boatload in interest. We're not interested in purchasing other rental property at this time. Too much work to self-manage.
So the question is: keep or sell?
