So I kind of fell into my first rental because my wife and I wanted to move and we were upside down on the house we bought in 07. I have had it rented out for 3 years now at exactly what my payment is on it so no income really but no loss with an easy going renter. Its at a point now where I could probably sell and walk out with $20k after selling expenses. its in a growing suburban area so I would like to keep it for a long term investment and hopefully sell 15 or 20 years from now where I could hopefully have much more equity and walk out from closing with much more cash. I also have thought about keeping it and pulling a heloc now on it to put a down payment on another rental. Any input or advice would be great. Thank you
My advice is to hold the property. Selling a property in the first 7ish years with a mortgage is not great because the strong majority of your mortgage payments are interest and the principal balance doesn't go down much. If you are breaking even, then holding is best because you will just build equity in the home year after year.
Also, as you know, selling is costly with the closing costs and the costs for your agent and the buyer's agent.
Thank you Jay. I was kind of leaning that way but just unsure.