Our rental property (3/1 SFH) in the Colonial Hills neighborhood of East Point has more than doubled in value since we purchased in 2015. I'm debating whether to keep holding or sell... what would you do?
Here are the numbers.
Purchase Price: $49,500 (Current 15 yr Loan Balance $35K ---- $435 per month PITI)
Current Value: $130,000
Our initial strategy was long term buy and hold. But being that it's increased so much it's got us thinking... considering taking the gains to put down on a small multi family, or SFH in an A/B class neighborhood.
That question is totally based on your goals, not on the numbers. What are you trying to accomplish? Make your real estate investment decisions based on your end goals. What may be a green light to you, may be red light to me and vice versa.
Why not hold and refi and pull money out?
Theres so much happening and prices are still going yup. Tyler Perry studios. People are priced out of pittsburgh and will look further south.
Then theres the 350 acre planned Development in College Park.
I just got a contract on a property in East Point yesterday.
I really think its worth holding on to stuff ITP. At least until we know where Amazon goes.
Like Michaela said...with a cash out refi you should be able to get 75% LTV...so $97,500. $975 should be enough to cover the new mortgage payment plus some. Take the $97k and reinvest...rinse and repeat!
I'm in the cash out refi camp as well. I also like the idea of a longer mortgage term because it shields you from interest rate and inflation risk for a longer time, and of course you can always pay down your principal faster if you'd like, so I'd look for a 30-yr fixed.
I add my vote to the cash out refi and find a multi-family property. Look for a 30 year amortization.
Thanks so much for the feedback!