Sell or Keep Investment Property before Recession (Belmont NC)
Hi Everyone,
I'm new to Bigger Pockets, but excited to be a part of the community! My wife and I are in ongoing discussions on what to do with our only investment property at the moment. We currently own a townhouse in Belmont, North Carolina which is a massively growing area outside of Charlotte. We have it rented out to some close friends that pay rent on time, but unsure if we should raise or sell it to take advantage of the current sellers market before the recession.
Rental Situation -
Expenses (Mortgage + HOA) comes out to $1,568 per month
We are currently renting it out for $1,750 per month, but have seen recent rentals in the community going anywhere from $2,000-2,500 per month. I charged a less at the time because of close reliable friends, and not having to use a property management company for the time being.
Currently locked in at a 2.625% 30 YR fixed.
Selling Situation -
Bought for $245,000 back in November, 2019 and the current loan we have left is $234,000. Recently sold homes are selling for about $360,000. So we have about $126,000 in equity before realtor fees and taxes.
As a beginner, I'm not exactly sure what to do here. My wife has a lot of fear that home prices will go down drastically, and we will lose our opportunity to make a quick buck right now, than buy back in when the market drops. Or to keep our rental property and increase the rent by a few hundred dollars per month. She also worries that rent will go down with the market and we won't have any surplus on our expenses.
I'm not sure if there is a correct answer here, or if we did sell it - what we should do with all of this cash rather than just sitting on it with the current inflation.
Really appreciate any advise! Thanks!