All Forum Posts by: John Peterson

Hello all,

Wanted to thank all of you for your thoughts and responses. We have bounced back and forth and ran multiple computations.

Here is what we decided to do. We are going to refinance.

One, it allows us to still be investing in real estate. Two, we don't have to go out looking for another deal and we don't lose 6% on the sale. Also, with this investment property we won't have to pay capital gains tax once we do sell it. Wouldn't be able to do that if we pulled money out to put into another rental property.

We will now be in a positive cash flow!!!

Thanks again for all of your input and suggestions.

We own a home that we purchased 3 years ago as our primary residence. After two years we purchased another home as our primary residence and began renting the previous home. 

Recently I've read a couple Bigger Pockets books. Calculating the figures on a rental property got me looking into our current rental home. 

I am curious whether we should keep it, or sell it. Here are some figures.

- 15 year mortgage. 12 years left.

- Mortgage $2,150 (includes taxes)

- Rent $1,800

- HOA $60

- Property Management $160

Roughly a $520 negative cash flow... Or so we thought. After reading BP books we failed to subtract all the other items... Brings it closer to $900 negative.

So now we are thinking of selling and investing in an actual investment rental property. One with positive cash flow. 

Here are other numbers...

- Purchase price $274k

- Currently owe $215k

- Current appraisal approx. $325k

Home is 8 years old in Valentine neighborhood in Woods Cross. Purchased at market value, zero sweat equity. Plans to keep it as a rental at the time of purchase were unknown.

Hoping for some guidance from some veterans on here. 

Keep, or sell?

Regards,

Lost Newbie investor