All Forum Posts by: Shelton Yuri

@Mike Bourgeois Thanks for reply! There is no HOA for the townhouse.

We have the cash reserve to keep the townhouse running for now. And we expect it can generate some positive cash flow as the time goes. We are just not sure if it is deserved to keep and rent it out. Or sell it and use the money to recast on our sfh. Here is what we calculated. If we make a profit of $130k by selling the townhouse and minus all the cost (agent commission, selling cost, maintenance), then we use it to recast on the sfh, the sfh mortgage will be down about $800/month. If we keep the townhouse, let's say no positive cashflow, but $1300/month of my mortgage is paid to principal. This is like $1300 gains vs $800. Seems keeping the townhouse and renting it out might be a better option. Is this the right way to compare?

We have a townhouse in Seattle for 4 years which interest rate is 2.75% but We only paid 5% down payment so we have PMI. The monthly payment is around $3600. We lived there less than 2 years, and the rest of time is rented out. If it is rented out, the rent is around $3700.

Recently we bought a sfh which interest rate is 6.375% and paid 30% down. We thought keeping the old townhouse because it can generate positive cashflow or maybe a little negative cashflow if something needs to be fixed. We know being an landlord is a job, but if we hold it for long time, it can be a decent income.

However, now we are thinking since the interest rate for our sfh is 6.375%, why not sell the townhouse and pay the principal of sfh? The return rate of townhouse won't be able to exceed 6.375%. Holding the townhouse sounds more like a bad investment plan.

Any advice is appreciated :)