Quote:
Originally Posted by LivingAlmostLarge
The $300/month you send AS to the house could be paying off your high interest credit card debt. So it's cost you more than $300/month.
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But I don't have any high interest debt, all of my debts are below 8.5%... I guess I'm just saying I'm hesitant to sell my other property because although yeah its operating at a loss now, I can conceivably see it turning a profit within 3 years regardless of what happens in the housing market. And then I'm thinking about the long term aspect, yeah I could put that $300 into an account at a 5% rate of return, it would take a long time to get back to the level my rental is at where someone else is paying the mortgage (the rental income does cover the P&I) because that only generates $180/yr, and I do get a tax writeoff for the loss... that writeoff affected our tax return by $2000 in our favor... whereas if the rental makes 5% in appreciation - thats $13500 in one year... I'm really doubtful that my house will depreciate by much since I owe less than the tax assessment. And I only owe $223K on the first mortgage... again I really hate to think of the HELOC as attached to the house because that was spending we did in addition to the house, so its more like a CC to me.
That is actually what keeps me holding onto it. Do I sell for a loss now, lose any equity I've gained when in 3 years I'm pretty confident the rental would be operating at a profit. Which is sort of similar to the OP... but I'm not sure if they said they could forecast when it would turn a profit or if they ever intended to be a landlord in the first place. My plan from the beginning was always to have a rental to supplement my lack of a pension, but again - I have a year to think it over and am trying to weigh it all out. And I'm not necessarily trying to defend my point, but just bringing it up so if there are faults in my logic that I'm not seeing... maybe someone can point them out so I'm not so wishy-washy on the subject and perhaps the information woud also benefit the OP.