Hi all
Just having second thoughts about a sale. We have 1 IP - a unit that was purchased for $185K in 2001 which is now valued at $350K. It can be rented out for $300 if we want to at the end of the current lease in a couple of months. Problem is it is heavily mortgaged and we are only just scraping by to keep it going as the rent is currently $220pw and putting in more than $10,000 of our own money into it each year. We can no longer do this as we did not fix the interest rate a couple of years ago and it is variable.
I am hesitant to sell it because of the capital gain but my husband says we should so we can switch to a positive cashflow mindset and get more than 1 investment property.
What would you do ? Keep the unit and keep scraping by for a couple of years until interest rates drop and rent starts to increase well, or sell now and by an IP at positive cashflow or near enough as possible for around $150K, then purchase another if possible..... We need a cash injection of $100K in order to keep the unit comfortably by the way....
Just having second thoughts about a sale. We have 1 IP - a unit that was purchased for $185K in 2001 which is now valued at $350K. It can be rented out for $300 if we want to at the end of the current lease in a couple of months. Problem is it is heavily mortgaged and we are only just scraping by to keep it going as the rent is currently $220pw and putting in more than $10,000 of our own money into it each year. We can no longer do this as we did not fix the interest rate a couple of years ago and it is variable.
I am hesitant to sell it because of the capital gain but my husband says we should so we can switch to a positive cashflow mindset and get more than 1 investment property.
What would you do ? Keep the unit and keep scraping by for a couple of years until interest rates drop and rent starts to increase well, or sell now and by an IP at positive cashflow or near enough as possible for around $150K, then purchase another if possible..... We need a cash injection of $100K in order to keep the unit comfortably by the way....