Advice: Keep or Sell LA Condo?
Hello BP community, I am in need of advice on whether to keep or sell a condo (2 bed, 2 bath) in LA (Frogtown/Elysian Valley) that I purchased in 2017. Complex was built in 2017 so no rent control.
Purchased $480,000, down payment ($127,000) at 4.5% fixed 30 years.
P&I: $1,789, Property tax: $500, Insurance: $30, HOA: $331 = $2,650 per month. I realize vacancy, repairs, cap ex also need to be figured into expenses.
Currently charging $2,600 for rent but could go up to $2,750.
So when considering all expenses, potential rent, tax benefits this is break-even at best.
The reason that I am considering selling is because my down payment cash ($127,000) is tied up and I may want to purchase something within the next couple years. If there is a downturn in the market, I would want to have cash ready to invest. Also, if there is a downturn, my condo might be impacted by it. Current market value is $550,000. I understand I will be paying about 6% in closing costs, etc as well as capital gains.
Advice from you all would be very appreciated!
Most Popular Reply
I'd hold it until you're ready to commit to buying something else. It's paying its own mortgage so its accruing value, plus appreciation (Probably. I don't know the Frogtown/Elysian Valley area or it's trends.). So right now its value is growing, whereas cash sitting in an account looses value because of inflation. So, if you pulled the cash out now would you have a better place to put it where it would grow as fast or faster? If yes, go for it. If not, then you've got a good but not great investment. Sit on it until you find a great one.