All Forum Posts by: Brian Weaver

So many good responses here, thank you so much for all of your thoughtful and excellent advise.  After reading all of the comments, the most common advise is to refinance so the equity can be used in another cash-flowing investment. I can refi, and there is plenty of room to raise the rent so it will still cash flow even after a refi.  I agree the Phoenix market will probably continue to appreciate given the job and population growth, so it is worth holding on to, even if cash flow isn't as high in this market.  I suspect rents will rapidly increase as leases are renewed over the next year to catch up with the 20%+ property appreciation we had over the last year. 

What do you mean by years of cashflow? 

There would also be a lot of capital gains on this one, with depreciation for 10 years, and prices were at the bottom when I bought it.  Unless it can be a 1031, it would probably be over 50K in tax. 

Looks like market rent is about $1900-2000.. I think Phoenix rents may take a while to catch up to where house prices have gone. 

I own a SFR in the Phoenix area. The current tenant is excellent and has been there for many years. Current rent is under market at $1500. With the Phoenix housing price boom, then property can now sell for $450K+, loan has 80K left on it @ 3.75%.

Options I'm considering is 

1. Sell it, and go invest in another market where I can pick up better ROI
2. Raise the rent. Current renter is great, so have to be something manageable. 

If I sold, I'd have capital gains tax on 300K unless we can do an 1031.  Leaning toward selling it and look to buy in Michigan or another state where the price to rent ratio is better. 

I'm seeing 3/2 houses in Chandler go for around $450-500K and only rent for $2000..   Doesn't seem like a great market to buy rentals in.