Rental Property is located on Miami Beach, Area is growing, but the out of pocket to maintain the unit is killing me. I Have a great interest rate of 6.75 for 30 years, but total expenses are $1385, and I collect $ 950 of rent. Should I sell or hold.
Thank you
2007-11-17 06:42:03 · 5 answers · asked by I C 1 in Business & Finance ➔ Renting & Real Estate
Tenants don't give a monkey's tail what your expenses are, only what comparable rents are. If you are underpriced, by all means raise the rent to improve your cash flow position. If you are about right-priced right now there's little that you can do. Try to raise the rent in that situation and your tenant will move, leaving you $1,385 a month out of pocket instead of only $435.
Whether or not you can sell depends upon the local market conditions. Parts of Florida, especially around Miami Beach, have suffered the largest decreases in value over the past year. If you have enough breathing room between your mortgage balance and what the property might sell for then give it a shot. If you price it properly you can get a quick sale even in a down market.
Keep in mind that it will be nearly impossible to sell while the tenants are in the unit. My experience has been that tenants are generally uncooperative about showing the place to prospective buyers. I've had them leave the place looking like a toilet to deliberately derail any showings and therefore a sale. You might get lucky and catch an investor who is interested in continuing to rent the place out but most of the time a single occupancy unit will only attract buyers who wish to live there themselves. All of this means that you will likely have to put the tenant out first and then clean it up for sale, all the while staying current on the mortgage payments.
This can be a tough choice. I hung on to a rental property for several years longer than I wanted to because it was easier to feed the alligator with rent coming in than not. Even so, it took me nearly 6 months to do the necessary repairs and sell the place once the tenants were out.
2007-11-17 07:11:52 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
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2016-07-18 23:35:41 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Raise the rent closer to the operations expense that way you will cut your losses. Right now the market is flat or declining for property values. With mortgages defaulting all over you would be better staying with what you have.
2007-11-17 06:53:06 · answer #3 · answered by Steven D 7 · 0⤊ 0⤋
Try raising the rent instead of selling. I currently rent a 4bdrm at 1450.00 a month. The owner goes up every year so I will be vacating her property next year.
2007-11-17 10:31:40 · answer #4 · answered by babegirl 2 · 0⤊ 0⤋
Rent-To-Own Home : http://RentToOwnHome.uzaev.com/?YiFY
2016-07-12 08:11:56 · answer #5 · answered by Gilbert 3 · 0⤊ 0⤋