Residential Real Estate Agent · St. Paul, MN · Member since 2008 · 8 posts · 1 vote
Should I sell it on CD or sell it outright?
My goal is to buy very profitable buy and hold. the subject property is not profitable at all. I owe $210k. There is very little to protect in a 1031 on the property.
A)
I have a CD offer to sell at $247k for 3 years at 6%, 30yr amort. I'll pocket $45k in cash to invest in something, but it will stay on my credit.
- or -
B)
Sell it for $220k net after all costs, walk away with $10k and clear $1,700 in buying power per month.
my gut says sell now and take the sure thing instead of waiting for 3 years to see if the property will appraise, if your buyers will qualify, and if the banks will lend the money...you can do a lot of good buying right now to make up for the amount you may receive in 3 years...just my opinion :)
Not sure what the total cash flow is on the first option, but the second option seems pretty good on the surface.
While the $10K in cash doesn't seem like much compared to $45K. It is more advantageous for tax purposes. More importantly saving $1700/month is big. That amounts to $20,400 every year saved that is money that is not taxed. If you can set this money aside you will soon have a good nest egg for make real estate purchases.