Buy it or Sell it: A Condo I can pay off or sell
Hi team,
I'm early in my journey and need some objective advice from some other folks. I currently have a mortgage on a condo in Tampa, FL. I'm trying to decide if I should go ahead and pay it off, making it into a soft asset with active renters in place, or just sell it and use the money elsewhere for a different investment. I could use some outside eyes on this. Here are the general qualities of the property:
- Property is in Tampa, FL, specifically Ybor City, the latin quarter.
- Walking distance from great restaurants and nightlife.
- Condo property is nice, has a swimming pool, big gym, covered parking spot.
- Condo is from 2005 but has had no major updates since then, so it's "ok quality" but has no great upgrades in place, is builder quality
- I owe about 100k on the mortgage
- HOA fees are about 300 per month.
- Property Management Fee of about 150 per month.
- Renter pays about 900 per month.
- Had some major fixes last year that ate all my profit (tune of 6k of fixes, hopefully one time)
- If I sell it, I can probably get 125k-130k max since it has no upgrades. After fees, maybe I'd make 20k on that.
My options:
I have enough cash to just pay off the mortgage and make this a positive investment. OR, I can sell it. If I sell it, I'd probably use the profit towards another property. And I do have 100k in the bank "extra" that I can use for this without risking anything.
So should I pay 100k into this, own it fully, and make cash flow of 450 a month (let's say 300 if I save 150 for random expenses etc), or sell it and use that 100k + the 20k or so from profit to find another property.
ALL OPINIONS WELCOME.