Sell or Hold Existing Rental Property
Hello,
I am seeking advice or suggestions on two rental properties I own. To avoid confusion I prefer to post one at a time. The first is a townhome rental in Jamison, Bucks County, Pa. I originally purchased new in 1996 and lived there for 9 yrs. I moved out and rented to an elderly couple for 9 yrs. Last October the man took ill and left unexpectedly (they owned 1.5 month rent). I had to update the property and at the same time, pay the existing mortgage and line of credit loan, utilities plus contractor and materials. After 5 months empty, I rented the property in March 2016. The new tenants lease is 1 year (going through divorce), He pays on time and now wants to purchase my property. My question is, as an investment, should I continue to rent or sell and purchase another property? Here are the numbers:
Purchased Price: 137,000
Mortgage Balance: 67,000
Line of Credit 54,000
Current Sold Comps Approx, $310,000
Current rental income: 1800.00/mo
My concerns are:
1. Capital Gains would be approx 28,000.
2. There are only 1 or 2 rentals in the neighborhood. Should I continue to rent?
3. Uncertain of market in 2017
4. Will probably need a new roof, heater & AC since they have never been replaced and I don't have the money for the repairs.
5. Is a 1031 exchange a good idea to a duplex or triplex so there is always income.
6. just continue to rent.
Any advice would be greatly appreciated as his lease is up end of February.