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I bought a Pre-war 2 bed/2 bath condo in the summer of 2016 at Lincoln square (west 70th and Columbus) area. It's full service condo at great location on 2nd floor for $1.6M (100 K over asking price) then invested $100K to renovate the unit with new kitchen and bathrooms. We love the area and now my job is being re-locating to Texas. The company will pay for the all selling cost including agent fee, legal fees and so so except for the tax. I made good down payment (650K+) and excellent interest rate of 3.1% for 30 year fixed, but my monthly mortgage, maintenance charge, property tax are still $7100 per month.
I've checked the rental comp in the area for similar units and it's about 6,000-6,500 so I need to spend money to keep this property.
I don't need to sell this property to find a new place in TX, but my job requires my full attention and I have two kids and equally busy husband and I've never owned rental property.
My question is, is it worth to keep this property and rent it out and keep spend money and energy ?
Or just sell it now when the company pays for the selling cost?
That's like $7K/year to keep the apartment, assuming that it's always rented and there are no extraordinary costs. It's painful, especially with that great low fixed rate, but I'd sell unless you really think you'll be coming back in the short term. At least the company will cover the transaction costs.
I bought a Pre-war 2 bed/2 bath condo in the summer of 2016 at Lincoln square (west 70th and Columbus) area. It's full service condo at great location on 2nd floor for $1.6M (100 K over asking price) then invested $100K to renovate the unit with new kitchen and bathrooms. We love the area and now my job is being re-locating to Texas. The company will pay for the all selling cost including agent fee, legal fees and so so except for the tax. I made good down payment (650K+) and excellent interest rate of 3.1% for 30 year fixed, but my monthly mortgage, maintenance charge, property tax are still $7100 per month.
I've checked the rental comp in the area for similar units and it's about 6,000-6,500 so I need to spend money to keep this property.
I don't need to sell this property to find a new place in TX, but my job requires my full attention and I have two kids and equally busy husband and I've never owned rental property.
My question is, is it worth to keep this property and rent it out and keep spend money and energy ?
Or just sell it now when the company pays for the selling cost?
I'd really appreciate your advice.
As an owner of a formerly rental apartment (which I stopped renting due to horrible tenants), I would actually think that your unit is worth keeping and renting out (until you can hopefully use it again for yourself or your family) because you will be able to get good tenants in that area of the city. Your neighborhood brings to mind specifically the situation of my very old parents who live in a large European city, where they own a second unit near a very famous opera. In the past, they had been renting for years to a somewhat famous opera singer who stayed there when in town for performances (which was relatively often). In addition to an excellent tenant they also got to have free opera tickets from time to time :-).
Some real estate agencies offer rental management services. I don't know what their fees are, but if they are acceptable, you could hire them to deal with all rental issues, to prevent that from interfering with your life.
I guess the main question is whether or not you plan to come back and live in the apartment at some point - or maybe you don't know and that makes it harder. I can't see any other advantage to keeping the apartment since you'll be incurring a monthly loss if you keep it, you don't seem interested in becoming a landlord, and selling at a later date is probably less advantageous tax-wise since the profits will be subject to a capital gains tax unless you turn around and invest them in another rental.
You've made a huge decision to invest in Manhattan, I'd keep it until its not bearable.
All real estate agents will tell you to sell because they make money off the transaction. You will end up losing some if you sell now. Keep your focus on finding the right broker and a right tenant. Once you have a right tenant, things will be manageable. Try look for one near your family, friends or networks. Give them a small discount. That area is nice enough to attract good tenants. Debatable, but with a condo, you shouldn't have to worry about too much. Investing in the city is never easy and if you were fortunate enough to have done it, i'd keep it as long as your financials allow.
Of course, if you find it amazing to live in Texas for your family, then you go with another route.
If you want a care taker I will volunteer. Yes you will loose money but I an excellent at the job
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