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General Landlording & Rental Properties

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Nick Yanutola
  • Easley, SC
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Should I rent or sell my house?

Nick Yanutola
  • Easley, SC
Posted Jan 24 2017, 12:58

Hello all,

New member here. I just found the website researching some stuff related to the issue below.  I recently moved (not far, just found a house I like better).  That leaves the question of what to do with my former residence.  I was looking for tax deduction information, and found bigger pockets.  I've been doing some additional reading here, and refining my list of inputs based on what I've learned so far.  I guess I'll give some specifics since it will probably be additionally helpful.  I would be grateful if you experienced landlords could let me know if you see places where my numbers are obviously jacked up.

-The rent number is a couple hundred under the Zillow estimate... hopefully slightly conservative.

-Using the "50% rule" (that was a new one on me) I just split those anticipated operating expenses evenly between repairs and maintenance.

-The mortgage is currently less than the number shown, but I'm anticipating a tripling of the property tax if I don't sell, so I assume it would go up to something close to the number listed.

-IF my numbers are right (and hopefully I can refine them here) if my yearly cashflow on average is right at zero, is it worth the headache just for the equity appreciation?  I'm not in an area where the property prices move much, so it would mostly just be my mortgage balance shrinking over  time.  If I sell, I'll probably clear around $60k in equity out, that I could put into easier market investments, or whatever else.

Thanks for any input.

Income Item Monthly Income
 
Rent 1500
Mortgage interest write off 100
Depreciation write off 113
Property insurance write off 23
Repair expenses write off 93.75
Maintenance expenses write off 93.75
HOA write off 10
Utilities payments write off  
Property management write off 37.5
Legal/Professional fee write off 0
Vacant time write-off  
 
Total Projected Income $1,971.00
Other benefits: Continual increase in equity via property appreciation and reduction in loan balance.
 
 
Expense Item Monthly Expense
 
Mortgage (includes property tax and insurance) 1027
Repairs (ex plumbing, AC) 375
Maintenance (ex yard stuff, light bulbs) 375
HOA 40
Property Management 150
Legal/Professional Fees 0
 
Total Expenses $1,967.00
Other: After three years, loss of tax-free profit on a sale.
 
Estimated Monthly Cash Flow $4.00

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