Our primary residence purchased in 2020 was converted to a rental in 2021 after work sent me away. We've never had a chance to move back in. The current renters will be moving out soon.
Purchase price: $364k
Currently Owed: $302k
Approximate Sale Price: $525k-$550k
Rent: $2,900 – $3,000
Mortgage & HOA: $2,493
Monthly Cash Flow: $407 – $507
Maintenance and Repairs are not included in these numbers.
I'm showing that the ideal time to sell would be in about 7 years assuming a 4% appreciation rate and a 10% growth rate for the S&P 500. I have a feeling a lot of maintenance will be required in those 7 years though.
What's your thoughts? Sell or Hold?
Should I sell my investment property?
byu/lseraehwcaism inrealestateinvesting
Posted by lseraehwcaism
2 Comments
The math looks pretty decent for keeping it, but that maintenance concern is real. Properties from around 2020 might start needing some bigger repairs in next few years – HVAC, roof, appliances etc.
Your cash flow is solid but once you factor in the maintenance reserves (usually recommend 10% of rent), you’re looking at maybe $200-300 monthly instead. Still not bad though. If you’re not planning to move back and the area has good growth potential, holding could work well long term.
If it rents well I would hang on to it. What’s the interest rate