I have a rental that i've owned for 2 years and in the 2 years its appreciated about $30k minimum and i loose $800/month. Should i pay off the 2nd mortgage with cash in the bank so that i would only loose $400 month? This unit is in a good and safe area with a great school district. I would like to hear from experienced investors.
2007-02-02 07:42:16 · 3 answers · asked by RM 1 in Business & Finance ➔ Renting & Real Estate
how are you losing 800 a month? is that a number you just made up because youre expecting more?
youre probably one of the people who rent at HUGE prices and expect people to pay it (by the way I own my home). I don't get how you could be losing 800 a month if its in such a great area.
but with all that said. yes,if you are so worried about losing money then you should pay if off and move on. renting out propety is a long term investment and usually doesn't pay off in the first 5 years-so hold on to it and give it a shot longer..but if you have the money and this renting thing isn't really about the money (sounds like it is for you) hold on to it because owning property is never a bad investment.
2007-02-02 07:53:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Have you looked at rental rates in the area? Maybe your rent is too low. I suggest paying the second mortgage off and then investigating rental rates in the area. If you find the rate you are charging is too low then increase your rent w/ the next tenant. If you find it is the right amount then you might want to consider selling it.
2007-02-02 15:46:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You may be leasing below market...also, may need to look into refinance existing debt by paying down some and consolidating the 1st and 2nd if possible...
2007-02-02 15:48:40 · answer #3 · answered by boston857 5 · 0⤊ 0⤋