Need some advice for parents - to sell or not to sell?

2 Replies

My parents bought 2 condo/townhomes a few years ago. I didn't know this until now but they've already paid off the mortgages for both properties maybe 5 years ago. But they just said they are thinking about selling them because they haven't earned much due to having to fix a lot of stuff each year. So all in all maybe they've netted $8k from the twp properties over the last few years. They just did some major AC repairs last year and I'm thinking they should hold on to them. I feel like they've finally fixed stuff that were really problematic and expensive and that the expenses shouldn't be too random and large for a while.

1st property is rented out for $1,400 with ~$500 in recurring monthly expenses (agent fee, HOA, insurance, etc)

2nd property is rented out for $1,200 with ~$500 in recurring monthly expenses

Are these numbers good? I have no experience in real estate whatsoever. But I'm thinking since the mortgages are already paid off, this is basically free money they can use to put as a down payment for another property in the future?

I think they are just getting fatigued with the maintenance expenses. I'm trying to be positive thinking that that should be over now since they've got it out of the way last year. Is this silly of me?

Updated over 1 year ago

Update 2: Hmm, well they showed me the new property they are curious about. It's in a populated college town. It will be a new development for around $140k. I'm thinking college towns may be worth it? 3 bedroom seems pretty good. Your guys' thoughts?

Updated over 1 year ago

Update: Forgot to mention parents are wondering if they should sell so that they can purchase a different property. Also the properties were purchases at around ~60-70k. They are being offered ~150k for one property right now.

It boils down to the numbers, primarily each properties value, to determine if they are worth keeping.

The only factor that determines if a good investment property is to be sold is whether the owner wants to sell it. Good or bad if they want to sell they should sell. 

The responsibilities  never end. 

Originally posted by @Thomas S. :

It boils down to the numbers, primarily each properties value, to determine if they are worth keeping.

The only factor that determines if a good investment property is to be sold is whether the owner wants to sell it. Good or bad if they want to sell they should sell. 

The responsibilities  never end. 

I think both properties were bought at around $60-70k not too long after the recession back in 07/08. Someone is offering to purchase 1 property for ~150k.

I forgot to mention my parents wanted to sell and buy a different property. But I'm thinking why go through all that again when you've already paid off the current mortgages, right?