Hang onto or get rid of my rental property

2 Replies

Hello all,

Thanks in advance for any advice!  I purchased a rental property in Highland, CA in late 2014.  Total purchase price for the home was $238k (cash) with $1700/month rent coming in. (I bought the house with tenants already in and paying.)  I manage the property myself.  

Fast forward to today and my tenants are leaving.  they were perfect so I'm bummed.  my question is:

Should i go out and and find new tenants and keep it going or is my money better invested elsewhere?  here are some stats:

monthly rent:  $1700

Purchase Price:   $238,000

Taxes:  $3000/year  $250/month

Insurance:  $50/month

management (if i decide to go that route):   $140/ month

NOI=$1260/month $15120/year equaling 6.3% return on 238K

I think i could get somewhere between $280-$290k for the house.  needs about $4000 in upgrades to get it ready to sell if i so choose.  Any advice would be greatly appreciated!  happy new year everyone

Thank you @Robert M. .. That brings my NOI down quite a bit. This November I will have owned the property for 2 years. I believe this gets me out of the short term capital gains tax rate. I'm wondering if it's worth hanging onto til then it if it's just better to get rid of it while I'm ahead and invest in properties with better cash flow?