[Calc Review] Help me analyze this deal

[Lisa Parker]

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*This link comes directly from our calculators, based on information input by the member who posted.

My partner and I are having a debate.  This house is a former home that he used to live in and is now being rented out.  Before we became investors, at the time it was rented, he was just happy to have someone in the home, so much so that he only asked for 3/4 of the actual mortgage as rent, but eventually he raised the rent to where he is now just breaking even - just getting the mortgage paid.

He is adamant that he just wants to get the tenant to purchase the property.  The tenants are extremely slow to get their credit up to par so that they can get qualified for a mortgage loan.  Meanwhile, we are just breaking even on the mortgage payments every month - making no money.  The house is located in an area that suffered drastically from the market downfall - losing about 85% of it's value, but has now rebounded.  

I did the deal analysis for a hold, which is my advice, and the numbers look good (please verify that for me, BP family).  In my opinion, it's an excellent property for a hold.  My partner does not think so because it is in an undesirable area, and, although property values are on the rise, this neighborhood will be the first to take the hit and go back downward when/if the market tanks again.  He just wants to get rid of it and purchase a property in a better area that has less risk.

The area (within a 10-15 mile radius) is about to get a boost - a lot of mixed-use developments (similar to developments that are already thriving in the city) because the market it so hot right now.  I think that within a few years, things will change and this property will increase drastically in value - a perfect hold property.

Please help us settle this debate, BP.  I have attached the Deal for your review.  I look forward to hearing from you guys!