I have an out of state rental property in Albuquerque, NM. My monthly mortgage is above the current rent ( ~3000 mortgages vs ~2000 rent). I manage the property remotely. My tenant will move this month. The estimate selling market for the house is about 410k. I was wondering if I should put the house in the market for even $20k below the market to sell asap or try to find another tenant and resent the house. The interest rate for my mortgage is pretty low ( 3.37) and I don't think refinancing is gonna make a big difference in my mortgage.
Thank you very much,
Stay safe and well.
Losing $1,000 per month before accounting for other expenses doesn't seem like a great option to me. Why do you want to hold onto it? Do you expect to have rapid rent growth or appreciation? If it were me, knowing just what you mentioned, I would sell if I had any equity at all.
Is the rent below current market value in the area? If so, see if you can raise the rent. If not, selling might be a good option if you don't want to worry about vacancy or having to renovate the house at all to get a new tenant, especially since you're remote.
Sell, sell, sell. Every month you wait, you're going further in the hole. Get whatever you can get out, and move it forward. You'll recover the losses on this property...and add new gains. Leave it here...and all you'll be doing is adding up for losses.
It doesn't make sense to lose $1,000 a month unless the appreciate is off the charts and making up for your losses.
Sell it, even for a reduced price, and you'll automatically save $12,000 a year.
I'm no expert on the value of properties in that market but based on what you're saying it sounds like it might be a good idea to sell. Finding a new renter may become difficult in the next few months and corona has significantly lowered peoples movement.
Don't even think about keeping it! Get it listed now. It did not make sense before and makes zero sense now. All the best!
Absolutely sell. Like everyone else, there is no reason for you to lose that much money each month.
I recommend selling, but I wouldn't drop the price right off the bat. List it for the price you want, then wait a week or two before reducing the price.
Based on the numbers. I would agree with the others and would sell. With the current market there is no telling what the future holds with COVID-19. Let me know if you need help