Condo Investment property - should I sell or hold...

Investor · Powell, OH · Member since 2016 · 7 posts · 3 votes

Hey All- I wanted to get some feedback on a rental condo I have North of Columbus, OH. Some background on it:

-It's rented and I self manage. Tenant has been there for 4 years. Condo is 13 yrs old. Cash Flow is $50 month (would be higher but condo fee is $157 month)

-Retail Market Price $125K - $130K (next door unit just sold for $126K)

-I owe $89K

-It's located in a A- / B+ neighborhood.

The question is I have been going back in forth on is do I keep renting for another year or sell it and take my profit to the next project which is TBD. My philosophy has been to hold for the last 9 years until the market rebounded which it has.

Just curious what others have done. I welcome any suggestions

Todd

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Marian Smith
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
9y
How much principal paydown? Seems a lot of risk for $50 month. But if it is very well located and the tenant seems stable (don't bank on that!) why rock the boat? I will say, a real estate adage is "condos are the last to appreciate in an up market snd the first to loose value in a down market." I dont particularly like condos as an investment because I feel I then am competing with apt complexes with deep pockets...but I would buy and live in one. You are probably fine either way, does your tenant want to buy?
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Justin Taber
Agent · Columbus, OH · Member since 2014 · 77 posts · 23 votes
9y
Hey @Todd Moore, I'd say look at what else you could buy in the 130k range and see if it makes more sense financially (It should) and use that to help make a decision. You would also be able to buy a larger investment than that. With 40k out of your last property, you'd be able to look in the 160k range which opens up some really strong options.
If you have any questions or would like to talk further please reach out.
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Todd Moore
OP
Investor · Powell, OH · Member since 2016 · 7 posts · 3 votes
9y
@Marian Smith thanks for the insight. The condo was my wife's before we got married. I hear what your saying about the ebbs and flows of condo market. I am going to approach the tenant about buying as an option.
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Todd Moore
OP
Investor · Powell, OH · Member since 2016 · 7 posts · 3 votes
9y
@Justin Taber thanks for the feedback. That's what I was thinking is explore larger investment options. Currently I have single family rentals, but am looking to branch out in Multi- Family.
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Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
9y
Originally posted by @Todd Moore:

Hey All- I wanted to get some feedback on a rental condo I have North of Columbus, OH. Some background on it:
-It's rented and I self manage. Tenant has been there for 4 years. Condo is 13 yrs old. Cash Flow is $50 month (would be higher but condo fee is $157 month)
-Retail Market Price $125K - $130K (next door unit just sold for $126K)
-I owe $89K
-It's located in a A- / B+ neighborhood.
The question is I have been going back in forth on is do I keep renting for another year or sell it and take my profit to the next project which is TBD. My philosophy has been to hold for the last 9 years until the market rebounded which it has.
Just curious what others have done. I welcome any suggestions
Todd
If you can cash out and get some equity i'd reinvest in other assets. I'd be happy to take a look. I'll send you a PM
[email protected]786-494-6766
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