Sell or Hold on to the Property

I own a 1 Bedroom Co-operative Apt Unit in Queens county of New York city. Building is Location Location Location.... Commercial, subway, buses, stores etc etc. Its presently rented out, after all expenses like maintenance, mortgage, HELOC pmts, the return on Rent is approx $250-$300 per month. The current Gross sales value of Apt unit could be $145-$150K, of which approx $55K would be net profit if sold in current market. Additional Details: Purchased in 2007 for $110K as primary residence-Resided in it till 2015, (Rentals of similar unit in 2007 were $1250) Market crashed in 2009 and value dipped to $75-$80K, Rented out from 2016 for $ 1700 (current rentals of similar unit are $1650-$1699) Current Value of unit increased to $145-$150K as per actual sales in building 2016-2017 The neighborhood values are on an appreciating trend...but coops apt values appreciate very slowly as one owns shares of the corporation prorated against the unit as a form of ownership to the Apartment and binded by a lease with the co-operative building. May see another $20K to $25K appreciation in next 4-5 years. Should we Sell and reinvest the $55K or hold it. (reinvest in single family home -real property rather than co-ops etc) I currently rent a 3BR in a different neighborhood in queens for $2050 per month. What would be the best few options i can consider to optimize my Returns in the next 5 years. Thank you Kola

Comments

  • IF it were me I would sell.
    Creator of Invest Four More
    If you want more help with your investing, check out http://investfourmore.com/blueprint-for-successful-real-estate-investing/


  • Can you borrow against the equity and still break even on the cash flow? Would you have enough cash to reinvest if you didn't take the whole $55k out? Lenders will cap you at a 90% LTV ratio these days.
    Earning another $5k in equity per year (about 10% of your investment) doesn't sound that slow to me. Look around for something to reinvest in and then decide what to do. Let your opportunities drive your decision.
    If you do decide to sell, just make sure the tax provisions don't change on you. You can avoid the cap gain if you sell in 2018 (you lived in the unit 2 of the 5 last years) but congress is about to change that. Keep an eye on the tax bill. It will impact how much cash you keep from the sale.
    AccidentalRental Turn your accidental rental into a profitable future.
Sign In or Register to comment.