What should I do with my condo
- Thread starter goldenboy
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It's your property, your decision.
But you will be in negative cash flow and frankly holding out to possibly break even is probably not in the cards.
Obviously you are not yet prepared to give up the $40,000 value drop or the mortgage money, taxes, condo fees, insurance you have now been paying for 4 years (about another $40,000) but the day will come.
Try to remember, as the heading of this thread indicates, you asked our opinion and one option you yourself presented was to sell. We are not being negative we are providing the reasoning to support that option. Others on here that advocate holding properties as rentals do so from the perspective of those in the business. They will often hold at a loss allowing other properties to support that negative cash flow. You are not in that enviable position as you are not a investor in income properties.
But you will be in negative cash flow and frankly holding out to possibly break even is probably not in the cards.
Obviously you are not yet prepared to give up the $40,000 value drop or the mortgage money, taxes, condo fees, insurance you have now been paying for 4 years (about another $40,000) but the day will come.
Try to remember, as the heading of this thread indicates, you asked our opinion and one option you yourself presented was to sell. We are not being negative we are providing the reasoning to support that option. Others on here that advocate holding properties as rentals do so from the perspective of those in the business. They will often hold at a loss allowing other properties to support that negative cash flow. You are not in that enviable position as you are not a investor in income properties.
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[quote user=Rickson9]Some people just need to touch the stove to believe that it burns. That's really all there is to it.
Not every stove is hot.
Not every stove is hot.
To lose $35000...... that's almost a year's wage for someone. I would think that it's better to rent out the unit. If you make $100K/year you must be in a pretty high tax bracket. If you keep your condo, the interest , management fees, and any expense related to the rental are all right offs. Even if the interest rates do rise, your interest paid on the property of the rental is still a right off meanwhile your principal is being paid down by your renter. Then if you decide to sell later on in 2014, perhaps the cost of the condo will have gone up and you won't lose that much when selling. You seem to have answered your own questions and you seem to be knowledgeable as to what's going on in the area (which I know nothing about so can't comment). At the end of the day you have to write down every single expense you have and what you will (not can) rent for. The numbers never lie. And talk to a trusted tax accountant. They may see something that you have overlooked that will help you make a good decision. The more info you get , the better the decision you make.
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Would anyone be interested in a list of service providers who use clearly inappropriate spam techniques, like Tony Lai above?
Does a list like that exist anywhere currently? Anyone who hires out a 3rd party to spam message boards for them for links isn't someone I'd want to do business with...
Michael
edited to add: and the REIN team deletes the spam just as I post.... Which is great, even if it does make me look a little crazy.
Does a list like that exist anywhere currently? Anyone who hires out a 3rd party to spam message boards for them for links isn't someone I'd want to do business with...
Michael
edited to add: and the REIN team deletes the spam just as I post.... Which is great, even if it does make me look a little crazy.
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Knowing all that seems to be coming for GP, I would rent that property out.
Contact the major contractors for the new hospital, they will be looking for long term rental space for workers and construction managers.
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Contact the major contractors for the new hospital, they will be looking for long term rental space for workers and construction managers.
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- Joined
- Aug 3, 2010
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- 24
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it's a math question you have and although the 40K is lost, it may not be irretrievably lost with
1/all the write offs of interest on mortgage etc. and perhaps 2/a possible bounce back of real estate market in your area
so check how the income tax picture would look with a tenant.
I also do not understand why anyone would need a management company for a condo.
If you do the screening process (including an impromptu drop by tenant's current place for a piece of info missing from their application ) you should be fine/
it's a math question you have and although the 40K is lost, it may not be irretrievably lost with
1/all the write offs of interest on mortgage etc. and perhaps 2/a possible bounce back of real estate market in your area
so check how the income tax picture would look with a tenant.
I also do not understand why anyone would need a management company for a condo.
If you do the screening process (including an impromptu drop by tenant's current place for a piece of info missing from their application ) you should be fine/