All Forum Posts by: Karthik Jayaraman

Updated the stats here - https://imgur.com/a/XYfyENf 

Quote from @Joe Homs:

@Karthik Jayaraman I vote to keep it.  If you are NOT in a negative cash flow situation I would definitely keep it for the rest of your life.  Let your tenants pay off the mortgage for you.  Why are you not wring off the interest payments?  

Good Investing...

Joe, thank you for the quick response. The only issue I have with this theory is that the returns %. HYSA nowadays returns around 5% so I am throwing away money by keeping this property, right ?

I cannot write off interest payments because I already have $10000 (cap) in interest that I am writing off as part of my primary residence. 

Here's my math -https://imgur.com/Tszgg4T

Why I should sell. ?

• I am getting only 1.5% returns without taking into account the equity building portion.
  Mortgage tax write off is 0 as I currently pay mortgage on my primary residence.
  I have used this property as my primary home for 2 years in last 5 years. So I will not have to pay the capital gains tax if I sell if now (CA).
  Average stock market return is 7-8% (historical data).
  Too much investments concentrated on real estate. I am paying 6% rate for my primary residence.

Why I should hold ?

• 3% interest rate and non-negative cash flow.
  Highly rentable area (bay area) and white collar rentals. Chances of a bad tenant is less (but possible).
  Bay area is a tough market to get back into.

Am I overlooking anything here ? What do you people think about my decision in selling this one ?