Should I sell and move on? Help or send SOS :)
Ok BP followers, here's my dilemma...
I own 1 duplex in a prime neighborhood that is appraised around $450,000. I financed well at 3.75 no MI so my payment is $2075 with a balance of $310,000 remaining on the loan. I take in $2,700 in rental income, but after utilities my net cashflow each month is $400. It's a beautiful turn of the century duplex that I renovated when I purchased and lived in one of the units then renovated a single family which I later sold. My main question is do I ride this out for the long haul, or cut bait and move on? The average duplex in my area sells for around $400,000-$500,000. The house is old, the Winters are long, and I'm tired of the leaks and squeaks and though I love the house, all I can see is dollar signs for repairs in the near future because I'm OCD about everything! Anything will help. Here are a few photos of the place if that helps.
Most Popular Reply
@Ross Melby I am assuming you'll net 95% of sale price since you're an agent and will only be paying half the commission.
Let's say you sell it for 430k, 95% of that is 408k, minus the 310k loan and you'll be left with 98k. You're 98k right now is making you 5k/year, a measly 5% return. Even if you include mortgage pay down, likely 80% of your mortgage payment is interest, so still abysmal.
Unless there are strong indications of serious appreciation in that area, selling is a no-brainer. You're better off parking the money in an index fund and not dealing with property maintenance & tenants.