How to know if we should sell or continue to rent?

[PMJ]

We own a Condo - not in a great neighborhood. 2 bed, 2 bath. Tenant is moving out and I WANT TO SELL, DH wants to continue to rent. We own other properties, so I'd like to sell, just to reduce our liability.

DH said right now the property is only worth about $115K. We still owe about $138K on it.

What would you do?

thanks

[KrisM]

We own a Condo - not in a great neighborhood. 2 bed, 2 bath. Tenant is moving out and I WANT TO SELL, DH wants to continue to rent. We own other properties, so I'd like to sell, just to reduce our liability.

DH said right now the property is only worth about $115K. We still owe about $138K on it.

What would you do?

thanks

So, if you sell and pay 6% in fees, you'll be out $30k or so. Will the value go up if you wait a year or two? Does the rent cover the mortgage?

[PMJ]

So, if you sell and pay 6% in fees, you'll be out $30k or so. Will the value go up if you wait a year or two? Does the rent cover the mortgage?

Good question -- I'm not sure. I don't think it'll go up $23K. Our current mortgage is covered by the rent and we are actually making about $100 / month profit. In my mind though, it's not really profit, when you think about rental insurance, rental license etc. you need just to own a rental property.

A family member is interested in purchasing the property - and he's a lawyer - so I'm also wondering if we'd be able to save the 6% fee if we were to sell it to him.

[AnnieW625]

If you have never had an issue keeping stable renters in it I would continue to rent.

[athompson]

I'd keep renting it out until your value goes up or you've paid it down more.
Think of it this way; the renters are paying your mortgage for you. Even if the value doesn't climb quickly, you'll be paying down your mortgage.