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
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
@David Andreiko Subtract 10 % maintenance and 5% cap ex to reduce your NOI. Then the decision seems to lean to selling.
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?