Should I rent, sell, or borrow and use equity from my rental property?
Sunday, September 27th, 2009 at
1:06 pm
My cost of the rental house after renovation is $100k. I can rent it for $850/mo (roughly 8% return after property taxes/ins.) or I can sell it for $150K (and pay around 25% income taxes) or I can take an equity loan for part of the value, get some income and buy the next rough diamond. Ideas?
Rent Back
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Tagged with: Equity Loan • House Renovation • rent • Rough Diamond
Filed under: property renovation
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I would sell it. I don’t think $850 per month is sufficient return on an investment of $100k.
The one caveat might be if you think the market is depressed and will come up substantially in value soon. That is, if your $150k house is worth $225k in a couple years, etc.
Good luck.
Hey
all
sell using a 1031 exchange. Speak to a CPA that specializes in RE about it.
om het even welk huis u voor 100.000 kunt kopen en het huren uit voor 850 heel wat bent,
u zou aan cash flow moeten kunnen die geen probleem, zelfs als de belastingen 2.000 per jaar zijn.