Dump that dump?
October 10, 2012 2:32 PM Subscribe
How do I know it is time to get rid of a rental condominium I own?
posted by anonymous to work & money (3 answers total) 3 users marked this as a favorite
I purchased my condominium in 2005. 3bedroom. 2.5 baths, 1400sqft. $150,000. It’s a nice place in a decent part of town. I currently still owe $126,000. I refinanced it in 2011 from 6.5% to 4.128%.
My tax documents have shown its value estimated at $100,000 and for the first time on Zillow today I found the same condo floor plan in the complex for $150,0000. (I know these estimates tend to be a bit on the high side).
I live abroad and only kept the condo only because the market conditions and prices have been so bad. I don’t see the condo market or the property value increasing significantly for many, many years.
I have had a renter for the last three years and have worked with property management firm taking 10%. The renter is a bit high maintainance and calls pretty frequently for repairs. The property management usually sends out a repair guy for a minimum bill of $180. ($240 just to change out the internal workings of a running toilet. A $20 part). This has happened 3 to 4 times each year for the last three years.
Through the property management and repairs I am losing about $2000 annually. (Yes I have been renting for less than the cost of my mortgage payments. It has worked in my favor due to international cost of living differences).
This weekend I found out the heater was not working. (A potentially expensive repair and just a pain in the butt).
I don’t plan on living there again in the future. Its bigger than I need and in a part of town I don’t really care for too much.
It’s really just an annoyance that costs me several hundred dollars each month.
If I can sell it at just around the remaining loan balance should I do so? I know it would be a big long term loss but I don’t see the investment turning around an the near or even mid-term future. I feel like I’m throwing good money after bad along with a lot of other headaches.