Please suggest : Apply for HELOC or Sell the Rental property
Hi All, I have a newbie question.
I have a town house in Jacksonville, FL. I lived there for 3 years, It’s my rental property (1 +Year). November 2021 it will be 5 years since I own the property. Now the property has appreciation, If the tax rules didn’t change, I think I can get proceeds without tax (minus 6 percent agent commission and closing cost).
My long-term goal is to own rental properties for cashflow and live on it.
This property doesn’t give much cashflow, Last year I spent around 6 thousand for HVAC.
My question is, should I sell this property and eventually build the rental property portfolio with BRRRR strategies or Get HELOC to build rental property portfolio. Please suggest.
Numbers are below
House type: Town House, 3 bed, 2.5 bath, 1636 sqft
Year Built: 2007
Purchased: 175,000
Mortgage Balance: 138,000
Zillow Zestimate: 257,000
Interest Rate: 3.625
Rent per month: $1625
Mortgage (PI) per month: 760
HOA per month: 200
Taxes per month: 308
Insurance per month: 62
Cash flow = $1625 – ($1330 + CAPX + Maintenance)
Not sure how much percent I should calculate for CAPX and Maintenance.
I don’t have property management company, If I include that also it will be negative cash flow.