@Oliver Martin , isn't what you meant to say:- "there could still be room for equity in the Las Vegas market, although that IS speculating"!?
It looks to me as though you would be marketing it to either Owner-Occupiers and/or Gamblers (they're in the right place though)!
I would recommend testing the market out at $390k, and take it when offered. Then, try to find properties that will rent out for at LEAST 1%/m of your purchase price or more, not the mere 0.5% this one could get. My 2c. All the best...
I would hold and continue to bank the appreciation on an asset with a current value of 390k and positive cash flow now, that will only improve after dumping the PMI, as well as enjoy the depreciation. Your doing well in this property, and you indicate that if you did sell yout would just reinvest into other rental property. So, why reinvent the wheel? I'd keep it and add to your RE in Las Vegas, by buying additional rentals. Long term, Las Vegas will be good to you. I've been there 22 years...it's been good for me.
@Oliver Martin You're locked into a sweet interest rate. I wouldn't want to give that up. If the property is in a primo area, you have good potential for additional appreciation.
However, a different option might be to refi this house into a conventional loan. See if you can pull out some of the equity and use that as a down payment on a second lower-priced rental. 80% of 390k is 312k. The difference is nearly 70k between what you owe and the new potential loan amount. Obviously there will be fees and costs, but this could be a good play depending upon what you qualify for.
@Oliver Martin Best of luck to you. Keep us posted.
@Phillip Dwyer Thank you. Will do.
I concur with Phil, having money locked up at 3.25% for 30 years is an asset in itself, so you'll want to preserve that, and if you can get money out with a home equity loan to buy one or two more, you'll have the best of both.
You can try Clark County Credit Union for a home equity loan on non owner occupied at 80% LTV.
Other than your awesome rate of 3.25% I would say sell now. Your homes price range is very stagnant right now and appreciating much slower than the lower priced homes say under $200k. I would be VERY tempted to cash out tax free now and then use the cash to make an all cash purchase under $150k. This will eliminate debt service increasing your monthly cashflow. You will also not be leveraged should the market dip in future years. Also with the lower price range still being in high demand, you will see better appreciation dollar for dollar. I am just playing devils advocate. At 3.25%, and once the PMI is gone you will have great terms should you choose to not sell.
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