Profile picture for UCLALIEN

Rent or Sell

In 2010 I purchased a condo for 350k, now that inventory is low and housing price has gone up, the estimate I received from the leading websites stated my condo is worth 450k. I have a mortgage for this condo with a pretty high interest rate; therefore, I am not making any monthly profit from my tenants. BTW my down payment was 20%.

So my question is... Should I keep renting out the property? Or try to sell it now. 

I currently have no financial goals so I am not in a rush to sell. But I feel like I am missing out on a good opportunity.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 14 - Mar Vista
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (12)

Hello-

You have asked a very good question. Should you sell or continue renting...? You have shared much of the information I would ask you during a consultation, thank you. However, in order to give you the best professional advice, I would also ask what your tax bracket is. 
 
High income earners often look for tax shelters: your rental property from the information you have shared is a tax shelter. At the end of the year, you are able to subtract the cost of maintaining your investment: reducing your taxable income.

Are there better financial opportunities available for you?  It is possible; however, there are many factors to consider. Feel free to contact me, my consultations are always free and devoid of obligation. Crystal Johnson
Coldwell Banker- Residential Brokerage Direct: 424-258-0882 Email: Crystal.johnson@coldwellbanker.com
 

 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 30
My Advice would be to first look at your options for reducing your mortgage payments. If a refi can give you lower interest rates it might make more financial sense in the long term. Also, in tandem with the increasing home sales prices, rent values have increased a lot in the last few years. You may be able to get better rental income than you currently have (but that's not as easy as getting a refi if you have tenants within a yearly lease).

Selling now will give you a quick cash-out but the options for re-investing are not so good right now so it might be better to leave it where it is, unless you are losing a lot of money every month.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 26

None of us have a crystal ball to determine where the market will head, but at the moment, with Interest rates still historically low and many new and repeat home buyers in the market, it appears to be a great time to sell - especially if you are currently not profiting from renting the property. I would start by getting either an appraisal or a broker price opinion on your property. A good start is to have a real estate professional run a CMA for you  (Comparative Market Analysis) - both for a Sale and a Rental. Perhaps the rent you are currently collecting is not in tune with current rental rates in your area. I would also recommend you check with a mortgage lender if refinancing at a lower rate is an option for you. As the property is a Condo I would also check with the HOA to see what their financial picture is - this is also public information for you to explore. The financial position of an HOA can give you a picture of how that development might do in the future. You can then compare all the information you have and decide which option would give you the greatest benefit. As a home is one of the largest financial investments we generally make, setting a financial goal may be recommendable - at least to explore the options that give you the best financial outcome in the near future. Hope this was helpful! 



  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 25
You might consider liquidating this investment, and putting your profit into another rental property that you can make a monthly profit off of, and market allowing, more equity. This way you avoid paying capital gains on your profit, and re-establish residual monthly income. Of course you should consult a tax attorney or CPA before making this move. Please feel free to call or e-mail if you'd like further assistance!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 25
It would be smart to call one of the local Realtors here from Zillow to get an accurate market evaluation. Online estimates are not accurate. This is a good time to sell property! Demand is very high and inventory is low!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 24
Sell, take your investments and invest into something that you are more comfortable in and know better. If the right agent will handle the sale of your property, they will do an excellent job. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 24
I'm a Realtor that specializes in all West Los Angeles & Beach City neighborhoods. [self promotion and contact information deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 18
Haha.. My sister made a comment to me awhile back.. you must show a loss on the investment.. I wasn't sure what I had just heard.. why invest if you expect a loss??

You should have refi when the Interest rate dropped to 3.25%.. so....begs the question..

*** WHAT WERE YOU THINKING !!! *** Buying a Condo as a Rental if you have NO FINANCIAL GOAL!

Put your money in a CD or Mutual Fund. Real Estate isn't for you until you have decide what your goal is.
Why do you go to work? not because you love it.. for that PayCheck. 
And if your financial attitude stops there... Party On as if today is your last.

You need to figure out what you want out of Life.. why you do what you do?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 14
I suggest you read or listen to a few books such as The Richest Man in Babylon.  It is impossible to advise someone when they don't know where they want to go.  Could you imagine stopping at the next red light and just randomly asking the car next you how do I get there? Where?  There?

It is important review your goals in order to determine what is best for your situation.  I would recommend that you contact your tax accountant to review the financial pros and cons of all options.  A Realtor can give you some advise but the financial component is going to be a direct reflection on your taxes as well. 

I have had rental properties for short-term hold goals and some for long-term goals.  They both make sense depending on the situation.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 11
It would be best if you call one of us who works your area for an accurate estimate of value.You will be in a better position to make a decision when you have that information.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 19
Hello,
You mention that you have a High % Rate, If you have not yet explored a refinance, i would recommend you look in to it and see if you can lower your monthly debt. (we have an excellent Mortgage Broker if you need one)  Once you figure this out, you will then need to calculate your TRUE Rental Net Income, add back in your Annual deprecation and this should give you True figures ($+ or -).

Example: If you are still in the Red? but have a property that is located in high rent district and does not require much maintenance. This type of property can eventually yield a higher growth in value and a lower impact during the down turn of the market.  WHAT TYPE OF PROPERTY DO YOU HAVE?

Example 2: A good financial goal would be to continue to invest in real estate, purchase another property. You have equity in your current property, you can draw out a line of credit, maybe? or if you have a few thousands dollars collection .25% or less; it would be wise to consider investing in Real Estate with an average 7-12% growth. 

Thank you
The Shamoo Team
Frank Shamoo | [deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15
Profile picture for wetdawgs
"I currently have no financial goals".     Before making a decision, sit down and come up with a strategy financially and run numbers of  various scenarios.    Do you thrive being a landlord, or would you have better opportunities to invest the gain elsewhere?   Make sure you evaluate the tax implications when you work through these scenarios.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 14
 
Related Questions
Rent or Sell
Profile picture for Crystal Johnson
Latest answer by Crystal Johnson
June 30 | 12 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 11810 Washington Pl, Los Angeles, CA Home For Sale
    11810 Washington Pl, Los Angeles, CA 90066

     For Sale: $919,000

    • Beds: 3
    • Sqft: 1675
    • Baths: 3.0
    • Lot: --
  2. 11808 Washington Pl, Los Angeles, CA Home For Sale
    11808 Washington Pl, Los Angeles, CA 90066

     For Sale: $889,000

    • Beds: 3
    • Sqft: 1675
    • Baths: 3.0
    • Lot: --
  3. 12724 Caswell Ave APT 8, Los Angeles, CA Home For Sale
    12724 Caswell Ave APT 8, Los Angeles, CA 90066

     For Sale: $519,000

    • Beds: 2
    • Sqft: 1032
    • Baths: 2.0
    • Lot: 6990