Utah: Negative Cash Flow... Hold or Sell?
We own a home that we purchased 3 years ago as our primary residence. After two years we purchased another home as our primary residence and began renting the previous home.
Recently I've read a couple Bigger Pockets books. Calculating the figures on a rental property got me looking into our current rental home.
I am curious whether we should keep it, or sell it. Here are some figures.
- 15 year mortgage. 12 years left.
- Mortgage $2,150 (includes taxes)
- Rent $1,800
- HOA $60
- Property Management $160
Roughly a $520 negative cash flow... Or so we thought. After reading BP books we failed to subtract all the other items... Brings it closer to $900 negative.
So now we are thinking of selling and investing in an actual investment rental property. One with positive cash flow.
Here are other numbers...
- Purchase price $274k
- Currently owe $215k
- Current appraisal approx. $325k
Home is 8 years old in Valentine neighborhood in Woods Cross. Purchased at market value, zero sweat equity. Plans to keep it as a rental at the time of purchase were unknown.
Hoping for some guidance from some veterans on here.
Keep, or sell?
Regards,
Lost Newbie investor