Selling a parking space: brilliant or foolish

[danieldroga]

Selling is a good idea but it is better if you settle with rentals.

[Slug]

Keep it. Raise the rent as soon as you can so you have the peace of mind that it is profitable.

[CoryWM]

I personally would do a few things.

1st. In a community space, I would have a flyer that stated the space was for sale. Although make it 45k or some other high bid. This would be similar to a buy it now price on Ebay. It won't sell today or tomorrow. But maybe a year down the road, someone buys another unit and wants a parking space. You cash in that day.

2nd. Keep tabs on if there are any vacant parking spaces for your units. If 3 people have spots for rent, and yours is one of them. You may well be able to ask $200 for your parking space the next time it's open.

3rd. Evaluate how it would make you feel mentally. Sure you're clearing $17 dollars each month in profit. But would the weight of paying off your debts be a greater reward? Sometimes you can't put a price on mental health. If paying off your debts would put you into more of an accomplished mindset and continue to save for the future. This is very similar to having cash flow for a business. 30k in cash today may help you avoid having to borrow tomorrow at a rate you don't want to pay.

For me personally, I would be wanting to get out of this investment in the future when feasible. Since you're already invested in it, I'd be looking to maximize my return. The return here is not the $20 a month you make. It'll be the cash out price. You're just holding the spot until someone comes a long who really wants a unit with t a spot. They can use that to barter down the price of their unit, and then they barter you down to $40k. Everyone wins. Also you don't have to pin a neighbor to the wall, since it's a potential neighbor and not a current neighbor.