Should I sell and find a 1031 or ????
In making a decision about whether to keep looking for a an “acceptable” tenant or sell the property, I researched whether I really made enough money to justify having to deal with liars, cheats, thieves, scumbags, druggies, filth, and squatters, otherwise known as tenants. Yes, bloom is off the rose.
Wait for it!
Fixed costs (debt, insurance, county tax for 2021) = $11730.00 looks pretty good, doesn't it? I have owned it since 2012 and it has nice equity.
Rent collected in 2021 = 4 months @ $1800=$7200, 7 months @ $1875= $13,125. late rent 4 times and didnt pay penalties, tenant bought drugs instead, $425 owed, new total=$19,900.
Less plumbing costs for causing drain clogs, lease violations, smoking, drug use, approx. $1500, new total $18,400. Unpaid rent court ordered $1875 * 2=$3750.00, new total $14,650.
Haven't even started on the out of pocket costs in 2022 after I finally evicted, which included $1,900 for the eviction lawyer. It took 3 months during which they did as much damage as they could while still occupying.
I have $11,000 in remodeling costs, labor, Home Depot, etc. I did get some help from homeowners insurance but no coverage for “cleaning” even though I had to replace the stove, parts of the fridge, carpet, etc etc
So I cleared $243.33 per month over the period. If I subtract the insurance claim payments I am in negative territory.
Why would I keep this property? I must be WET if I do. Right?
But I need to know what my cap gains are if I sell.
If I find a qualified applicant the rent will be $2000 plus animal fee $600 (only one allowed) and tenant pays utilities.
Long story short, who do I contact on this site that can help me calculate my cap gains? Advise me about Delaware statutory trusts?
There is nothing to buy here in my town that will cash flow. MLS has overpriced houses that look like bankruptcies if BRRR'd. Same for flips. And I cant invest OOS.
Thanks for any referrals or solid suggestions.