Should I Keep or Sell my Rental Property

[Ben Mosh]

Hello everyone -

I'm hoping to get some general input on what I should do with one of my rental properties (eg, do you think the amount of equity I have would perform better in a different investment). Also, what calculator(s) do you all recommend for analyzing current investment performance (rather then analyzing new investments). Some details on the property:

Location - Condo in Orange County, California

Current Value (based on zillow) - $520K

Current principal on loan - $100K

Monthly Rent - $2,800

Current Monthly Income (before factoring in maintenance and vacancy) - $1150

[Joe Villeneuve]

Sell...faster than you can this.  You have $400k in equity just dying on the vine.  Your equity right now is worth 80 cents on the dollar.  IT should be worth $5 on the dollar.  Sell the [property and turn that $400k into a PV of $2M...instead of just $520k.

Zillow's estimates are never anywhere near accurate,  If (most likely) it is high, and way the actual value is $350k.  That would mean your equity is only worth 70 cents on the dollar.  As you equity grows, it value decreases.

Now the CF.  Your CF is equal to about $13k per year.  With an equity position of say $390k, that would mean it would take you 30 years for your CF to equal what you could have in cash right now with a sale.  What could you buy with $400k in cash, even $350k in cash.  What kind of (much higher) CF would that bring?

Did I mention something about selling?