I am very confused on whether we should sell our condo/rental now or wait. I was hoping for your advice. Not so much for tax reasons, but just for an overall investment/savings with the goal to pay off our main residence as soon as possible.
We only have 9 years to pay off the 15 yr mortgage on the condo, which is the rental. We currently owe 67,000 on the condo. Right now the property value is currently just below what we bought it for in 2008. So, if we sold now, it would be for a slight loss. But would have a decent chunk of cash.
If we sold in 7-8 years, I am assuming it would be in the 170,000 range. My main goal is to pay off my current residence and I was thinking the condo would be a property that we sell and use to pay off the remainder of our current home. (Current home balance, around 189,000.)
Right now we are bumping the rent to 1,150 a month. Our mortgage and hoa equals 1,173. So, right now we are putting in 23 dollars a month out of pocket. The AC will probably be replaced in the next 7 years. That repair will cost around 4,300. Other than the AC, there is no other large expenses hanging over us. No roof, etc. Just small appliances. The HOA fees will probably raise though.
Our condo mortgage was at 3.5% for 15 years. We only have 9 years left. I know this is a personal decision, but do you think it is a good financial decision to hold on to it until it is paid off so that we can use that money towards paying off our current house?
OR
Do you think it is better to sell and invest that money in something that would gain interest or profits over the next 7 years? I am not really updated on investments.
Like I said, my main goal was to sell the condo at one point and use that cash to pay off our main residence. Sorry to ask, but what would you do?
FYI- My wife and I are both teachers in NC and make about 40k each. My wife is out of work this year and next, so our savings is fading quickly. But, I do plan to do alot of side work the next couple years to help that loss. So, it is tempting to sell and get the cash as a cushion...but I also planned on having that to pay off the main residence one day.
My primary residence still has 26 of 30 year mortgage. The primary home has a balance of 189k at 4.25%. The condo has 9 years left of a 15 year at 3.5% Only costs I see with condo (other than the 23 extra a month) are yearly assessments from HOA, home appliance replacement, AC replacement, and a month here and there searching for a renter. Thanks Guys!
