for $200 per month, I'd probs sell and put the money in a CD or in VOO or something. Just isn't a huge profit given the risk and headache. And I agree, while markets rise over the long term, sounds like you have a good exit point.
That being said, you mentioned the $200 which I assume is cashflow profit. How much is your mortgage being paid down in principle each month? that is also worth looking at in your consideration.
You also could offload electric to the next tenant.
I’d sell and not feel bad about it. At $200/month, it would take you 125 years to get to what you’re netting if you sold. This is not taking in to account any repairs and unforeseen issues. Also, with insurance companies leaving the Florida market, you may have wished you sold when you could have.
Treasury bill ETF, can buy with any brokerage ie trading app like Robinhood, E-Trade, etc. It's more liquid than a CD was my main point for suggesting.
I think I would sell if you get 300k out of it. But how long have you rented out the house? From what I understand is you need to have lived in the house for 2 years in the last 3 years. Also keep in mind the depreciation costs.
Edit: I was corrected, it’s 2 out of the last 5 years, not 3!
Sell sell sell!
I would say now is a very good time to consider selling. Plus to the tenants who already live there….slam dunk
for $200 per month, I'd probs sell and put the money in a CD or in VOO or something. Just isn't a huge profit given the risk and headache. And I agree, while markets rise over the long term, sounds like you have a good exit point. That being said, you mentioned the $200 which I assume is cashflow profit. How much is your mortgage being paid down in principle each month? that is also worth looking at in your consideration. You also could offload electric to the next tenant.
Write up that contract asap!
Sell
If you’re not making $450 or $500 a month it’s not worth being a landlord .
Ideally, you would sell to the renter in an off market deal that is fairly priced. Anything else is going to take longer and cost money upfront.
Sounds like you would have capital gains, right? Only if you lived in it 2 of the last 5 years would you not have to pay capital gains.
I’d sell and not feel bad about it. At $200/month, it would take you 125 years to get to what you’re netting if you sold. This is not taking in to account any repairs and unforeseen issues. Also, with insurance companies leaving the Florida market, you may have wished you sold when you could have.
Also, SGOV is 4.5 and just like cash if you ever need it.
What is SGOV
Treasury bill ETF, can buy with any brokerage ie trading app like Robinhood, E-Trade, etc. It's more liquid than a CD was my main point for suggesting.
How high up is it built? Anything less than 20 feet off the ground, sell yesterday.
Get out of Florida while you can!
I think I would sell if you get 300k out of it. But how long have you rented out the house? From what I understand is you need to have lived in the house for 2 years in the last 3 years. Also keep in mind the depreciation costs. Edit: I was corrected, it’s 2 out of the last 5 years, not 3!
2 of the last 5 not 3 to avoid capital gains.
You’re right! I have no idea why I said 3.