Updated about 7 years ago on . Most recent reply
Advice on Northern VA Condo
Hello All. I'd appreciate anyone's thoughts on what to do next with a condo in Falls Church VA. We lived in the unit for a little over 2 years and moved out last September. Starting in October 2017 we started renting it at $1670 with PITI + HOA coming to $1652. We unfortunately had to replace the refrigerator and dryer this year which made us cash flow negative. We could probably find tenants at 1700, more if we updated the floors in kitchen & bath.
HOA seems well run with sound financials. Roof was replaced recently without special assessment.
We're trying to decide whether to sell late in the fall, rehab over the winter to sell in the spring, or continue renting after tenants move out. Our interest rate is 3.625 but with $39 PMI at ~81.5 LTV. Assuming we keep the property until October 2020 we'd see a 9% return on putting down 10k or so to reach 78% LTV and remove PMI. October 2020 is also when the clock runs out on our 2/5 cap gains exemption. Recent nearby sales indicate we could sell at 6-7% appreciation since 2015.
Maybe we just had some bad luck the first year but it was a pretty hands on experience. Any thoughts on what you would do with this property?