All Forum Posts by: Megan Johnson

Thank you for everyone’s thoughtful responses - unfortunately I also realized that our AGI prevents us from additional tax benefits, so not really considering that in the equation. Could write off maintenance expenses to lower the additional taxable income from the rental, but wouldn’t be able to lower my w2 taxable amount from what I’ve seen. 

I definitely agree the logical decision would be to sell. It would maybe make sense if we could get our rental income closer to say $2800. Once we pay off the hvac, it lowers our base expenses to $1800 assuming the renters would take over utilities and no further increases in HOA or property taxes.

But even then, once you factor in maintenance (5-10%), PM (10%) and buffer for vacancies (5%) it’s still not a great spread based on additional calculations I’ve run.

It would be an emotional decision to keep it if we ever returned to Charlotte, but even then we could have our next down payment for an upgraded place ready to go if we did. And I’m not against renting in the short term. 

Thanks again!

My husband and I (both early thirties) have owned our 3 bed / 2.5 bath condo in Charlotte for 5 years - 3.5% IR with 20% down on 310k. We owe $222k and could sell for ~ $425-445k. PITI is $1800 including our HOA. Utilities + paying off hvac at 0% int puts us all in at $2200 / month.

We like it enough, especially at the price, but it’s certainly not the dream home and could use cosmetic repairs. Lately we’ve noticed water damage, drywall cracks, and other issues that I worry may bite us later. We are not sure where we want to be longterm but are moving closer to family. For that reason, we’re planning on renting vs buying at our new location. 

We could rent it for $2500/2600 according to local realtor advice and data. We would pay a property manager 10%, as we are moving out of state and have no desire to be landlords. 

Our best case monthly margins - with the hvac payment and PM fees - are $340 at $2600 rent and no repairs. We would be hanging onto it more for its future potential. but ideally I’d rather have a townhome or single family over condo. 

we’ve considered selling and setting the cash aside for when we’re ready to buy again, accepting that we’re kissing that interest rate goodbye. My concerns with renting - low margins and the headache of prepping the place to sell or move back into after renters have torn through it + potentially being responsible for a mortgage AND my rent if things don’t go to plan. 

Trying not to be short-sided here, as I could see it paying off in the long run and know we’re fortunate to own in a growing city. However, it hasn’t grown at the rate other properties have and not sure it’s where we want to be. 

Would love advice on whether to sell or rent out in this scenario