Hi All,
I bought my first investment property - condo in 2007. Paid $71,000. Vacancy rates were 0% real estate prices on the rise then 2009 hit and Williams Lake has never recovered. Vacancy rates are about 10%, real estate prices are down. Don't see any economic upside to Williams Lake in the near future. Finding good quality tenants are hard to find with a small population of 12,000.
Current monthly numbers;
Rent $725
Strata $232
Insurance $26
Mort and Pro Tax $362
Pro Management $72.50
Cash Flow $32.50
If I sell today condo is worth apporx $63,000 minus realtor fees about $58,000 in my pocket.
Paid $71,000
After costs to sell $58,ooo
Lost $13,000 in the difference in price. But in 9 years also paid down approx $13,000 in mortgage. If I were to sell this would be a break even deal maybe a little positive with the monthly cash flow over the 9 years.
This was my first investment property that I bought after reading one book. Learned a lot but I would never buy in another small market.
Open to opinions do I hold or sell?
Thanks!
I bought my first investment property - condo in 2007. Paid $71,000. Vacancy rates were 0% real estate prices on the rise then 2009 hit and Williams Lake has never recovered. Vacancy rates are about 10%, real estate prices are down. Don't see any economic upside to Williams Lake in the near future. Finding good quality tenants are hard to find with a small population of 12,000.
Current monthly numbers;
Rent $725
Strata $232
Insurance $26
Mort and Pro Tax $362
Pro Management $72.50
Cash Flow $32.50
If I sell today condo is worth apporx $63,000 minus realtor fees about $58,000 in my pocket.
Paid $71,000
After costs to sell $58,ooo
Lost $13,000 in the difference in price. But in 9 years also paid down approx $13,000 in mortgage. If I were to sell this would be a break even deal maybe a little positive with the monthly cash flow over the 9 years.
This was my first investment property that I bought after reading one book. Learned a lot but I would never buy in another small market.
Open to opinions do I hold or sell?
Thanks!
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