sell it or rent it?

**va22314** · 03-08-2010, 03:36 PM

I need to get a reality check.

Here's why I think I should sell.

My ultimate goal is to quit my job and travel the world. I can do that without using the rent or the proceeds from the sale.
I have no mortgage.
My condo currently has 35% renters.
The association has nothing extra in the reserves and, as a result, it has to have a special assessment every time there is a major repair. One is planned already for painting the exterior woodwork.
In addition, there have been structural problems (buildings sinking/foundations cracking) due to marine clay. I have already spent about 6k in special assessments. One of the owners has posted comments about his door not closing and I strongly suspect this is due to the sinking building that will result in another cracked foundation.
Interest rates will rise and that will push prices down.
If I sell now, I can walk away without paying capital gains taxes.

On the flip side, here's why I should rent it out.

The rental income is greater than the interest on any safe investment.
It is easy to rent as it is within walking distance of Metro (Wash DC area).
I can afford for the real estate market to come back even if it takes 10 years.

To be objective, I'd like to argue this side better and I'm having a hard time doing it myself. I want to avoid a big mistake that I will regret. Can anyone help me with this decision?

**Resale Centre** · 03-09-2010, 02:21 AM

lol - unfortunately you are going to have to make this decision yourself, you have already explained the pros and cons of your situation but it looks like you are battling both ends of the argument here.

What I would probably say to myself is, is the work needed going to cost an absolute fortune and become a thorn in my side whilst I am traveling? Will I live to regret selling once prices do rise and you miss out on the price you could eventually sale for? How much are you going to save through not paying capital gains?

Having your foot on the ladder and a regular income from rental is always a plus, however - are you guaranteed that you are going to find a tenant? Who is going to manage the property whilst you are away?

I think I am about as stuck as you are on making a decision! Good luck in what ever you do, and I am sure the decision you make will be the right one for you.

**PreviewOrangeCounty** · 03-09-2010, 09:49 PM

Sounds like a personal decision for you based on what you need in your life at this time.

**Chrisopher Moltisanti** · 03-10-2010, 12:00 PM

If I were you, I'd cut my loses and sell now without having to pay those blasted Capital Gains. If you're under the impression you can double your money in two years (which isn't likely) without the place permanently sinking into the ground or ocean or wherever, then hold onto it.

3/4 of the U.S. is upside down. It's going to take a while before we see any ROI, unless you know something we don't.

Get out now, take what you can get and get rid of it.

You want to travel, then sell the thing before it collapses and you end up in court for the next thirty years.

CM

**Lease_Abstract** · 03-10-2010, 09:03 PM

You're a smart guy to elaborate a benefits and losses of both choices, so you can use that intelligent to make your own decision here. Knowing which of which is to choose to achieve your goal.

**Waterfront Specialist** · 03-10-2010, 11:05 PM

Hello everyone,

Hey if you already knows the advantages and disadvantages of the same then i thinks you are capable enough to take your own decision.

Good Luck..!!