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Money Matters
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Old 05-31-2013, 05:22 PM   #1
Riverbmr3
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Question Keep Rental home or Sell

Guys,
I have this rental home occupied by the tenant for 2.5 years and lease will expire this December, he told me that he is interested in buying the house if im willing to sell it. I still have $90K mortgage balance and about 9 years to pay, I have at least $200/month cash flow in this rental. question is..do I sell or keep the property as rental..thanks

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Old 06-02-2013, 07:13 PM   #2
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Quote:
Originally Posted by pinoybmr3 View Post
Guys,
I have this rental home occupied by the tenant for 2.5 years and lease will expire this December, he told me that he is interested in buying the house if im willing to sell it. I still have $90K mortgage balance and about 9 years to pay, I have at least $200 cash flow in this rental. question is..do I sell or keep the property as rental..thanks
how much could you sell it for?
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Old 06-03-2013, 08:01 AM   #3
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If the price is right, sell it. You already have a willing buyer. No hassle with a realtor, no commission to pay, no dealing with a vacant house while you sell it.........
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Old 06-03-2013, 08:22 AM   #4
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sell sell sell.

$200 positive is nothing compared to the risk.

see if he has any real money for a down payment and owner finance it for a few hundred more a month.

best of both worlds.

JMO.
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Old 06-03-2013, 02:18 PM   #5
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sell sell sell.

$200 positive is nothing compared to the risk.

see if he has any real money for a down payment and owner finance it for a few hundred more a month.

best of both worlds.

JMO.
Wouldn't he need to pay off his existing 90k mortgage to do an owner finance / title transfer? If he does not have that capital this may not be an option.
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Old 06-03-2013, 03:51 PM   #6
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Wouldn't he need to pay off his existing 90k mortgage to do an owner finance / title transfer? If he does not have that capital this may not be an option.
Of course. Although there are many creative lawyers out there.

You could always hold a second if there is a large enough down payment to stay above water.
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Old 06-06-2013, 12:52 PM   #7
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I will have at least $100,000 after paying the balance, you are right, no more realtor needed but you guys didn't realized that rentals are going up, this property can be self liquidating until paid off.
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Old 06-06-2013, 01:09 PM   #8
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I'd rather sell while someone is coming to you to buy it. You have the upper hand right now.

Unless you're planning on just keeping it for a long time (until paid off in 10,20+ yrs), I'd get rid of it now vs. later.
$200 / month isn't enough (for me) to keep it, even knowing that the loan is gradually being paid down. If it were a cash cow, that might be different.

I'd take the $100k, buy a 4-6 unit building with the idea of increasing your monthly cash flow while still in the rental business. Check F2B's recent thread. Maybe some of his numbers aren't spot on, but it should give you an idea of the kind of deal I'm talking about. Buy a building where 50% occupancy will take care of the costs and anything above that is cash in your pocket (or to cover repairs, etc).


JMHO.
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Old 06-19-2013, 10:45 PM   #9
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Sell man!!! Once I dump mine I am going for a multi-unit next where like they say 1 or 2 pay the mortgage and the rest positive cash flow.
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Old 07-26-2013, 02:19 PM   #10
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I have decided to keep it, tenant wants to extend his lease
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Old 07-27-2013, 10:42 PM   #11
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I have decided to keep it, tenant wants to extend his lease
Good move. From a tax point of view, you're probably earning more than $200/month after deducting depreciation and mortgage interest.
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Old 08-01-2013, 03:05 PM   #12
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@Keno, same boat here. Changed companies with no new tenant, but for tax purposes it is still worth it due to our income.
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Old 08-13-2013, 03:43 PM   #13
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Good move. From a tax point of view, you're probably earning more than $200/month after deducting depreciation and mortgage interest.
yes, got $7k refund this year
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Old 08-20-2013, 01:35 AM   #14
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Mine went vacant so we put it up for sale and got an offer. Going ot miss the deductions
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Old 01-17-2014, 11:51 AM   #15
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my tenant will renew for another three yrs, business is good..
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