Updated over 5 years ago on . Most recent reply
Analyzing Rental Investment Property
Note: Numbers are just for example purposes:
We bought our first investment property, a conservative condo, in 2018 with following numbers:
Total Monthly Expense: $1650
Total Monthly Rent: $1700
Monthly Cash flow: $50
Comes Illinois real-estate taxes 2020. It changed yearly taxes from approx $3100 in 2019 to $5200 in 2020 and the new numbers look like following:
Total Monthly Expense $1850
Total Monthly Rent: $1800
Monthly Cash flow: -$50
The 1800 rent is going to be until May 2022.
What is your recommendation?
Keep the property in hope to generate some money in future or sell the property due to negative cash flow.
Property location is very hot, almost $0 vacancy cost, low HOA, peaceful neighborhood, diverse city, stable economy.
Note: Total expense includes (Monthly mortgage, Taxes, Insurance, HOA, Property manager Fee, CapEx, Repair, Vacancy)
Any help is appreciated!