All Forum Posts by: Vijay H.

Wow.. Thanks for all the different points of view , I had not thought about the idea of pulling out some part of the equity locked in. I need to do some hw now to find a set of potential investments incl outsourcing to fundrise with a portion of this or even fund others as an investor in the seattle area. 

Thanks @Theresa Harris @Joe Villeneuve. I understand the low CAP rate and the lack of ROI from this property but the situation has changed over the last 5 odd years and I my thinking is more inline with @Heather Schoeman and @Brian Sher. the thing is that with the rental rules changing so much and this being a part time gig I worry about the liability aspect as well as the ROI being low and me not acting on it to leverage the equity sufficiently.

Thanks. There is no outstanding loan amount on this right now. 

I have a rental in the same areas as my primary (that house was my primary, that I converted into a rental) , its now worth 850K and is cashflowing around 18k / year after taxes, repairs. no big repairs yet to use the 50% rule but its getting close (water heater, deck …) .Thoughts from you all on if this is the time to sell and invest in equities, multiple properties by leveraging the returns

 Thanks Dave..I will definitely take that into account

Hello all, Facing a quandary here and wanted to ask what you would do here . I have a rental (sort of fell into this as it was my primary but couldn't sell it in 2011 market), and am thinking of either

1. selling it and buying a 4-plex/other and continue to pull in the passive income stream via 1031-exchange hopefully, or

2. selling it, take the hit of the capital gains/medicare surtax etc and just using the cash to pay down my balance on my primary.  

I am leaning towards 2 just because of the benefits of living almost debt free. here are some numbers (assuming Zillow' estimates are good)

Sale of rental - 650000

Net Adjusted basis - 299000

Capital gain = 286000 (assuming 10% selling cost, and pay  off rental loan of 198K). 

Capital gain tax - 68K (per calc at https://apiexchange.com/capital-gain-tax-calculato...)

After tax equity would -  318K 

@Thomas S. - Yes I am looking at the rental prices and am taking an approach of raising them based on how good of a renter I have. 

@John Van Uytven - Thanks for the info. By calculator do you mean the one under tools , rental property calculator. The problem I see with that is that it doesnt take into account the fact that what I paid for the property in 2003 and what I owe on it is very different from what happens if I had bought the property in 2011 and rented it out. 

@Thomas S.  - Expenses are nowhere near 50% of the monthly. You hit it on the head for the major repairs since I had to fix my roof (irrespective of whether I sold it or rented it this had to be done) 2 years ago and that year it was negative but other than that its been net positive even including taxes, insurance, expenses and  debt repayment. Does that mean its a good idea to keep it. 

My thinking is to keep renting this , pay off the mortgage and own it free and clear. Based on what has happened over the last 5 years , its actually whet my appetite to buy maybe a du/tri/four plex to rent. 

Hey folks, I couldnt sell my house during the 2011 downturn and ended up making it a rental. So far it seems OK, trying to find out more info as to how it compares with folks experience here and how to really analyse the return on this and decide whether to continue renting it out or sell. 

Any advice/pointers are appreciated