Hold or Sell in a hot market with high appreciation??
Hola BP Community-
I've been toying with the idea of selling my condo in Boston for a while now but I can't seem to come to a solution. I bought the condo in 2013 for $525k and it's now worth about $625k. Its in one of the hottest neighborhoods and the construction is all over the place! Boston is still booming but of course we're heading for a slow down very soon (I think). The property will certainly appreciate faster than almost all other areas I'd invest in over the long term.
I have a 15 year mortgage on the property and I'm currently in year 4-5, so a good amount of the interest has been paid off and most of the payments are now going toward principle creating giood equity.
-My mortgage payment is $2900/month with a condo fee of $515/month
-The unit is currently rented for $3200/month
-Current mortgage rate is 2.625% :-)
-Outstanding balance on the loan is $295k
-Should I re-finance into a longer term loan? It would help the cash flow, but significantly decrease the amount that goes to principle!
-Should I pay off the loan over the next few years?
-Should I sell the property and throw the money into a cash flowing deal? Only issue is I won't see this type of appreciation over the long term anywhere else.
-Should I keep it as is, and pay it off over the next 10 years with about $200-$300 coming out of my pocket each month?
-Any other options?
I really appreciate any feedback on this case! I've been thinking about this one for quite a while and just can't seem to come to a solution!
Thanks so much!!
-Nick