Should I sell my investment property?
Should I sell my investment property?
I have a house in queens NY, but I live in the Midwest right now. If I sell it now, it's probably going to be around 1 million. I have mortgages of 220k.
It's a pain to maintain/manage it for me since I'm out of state. Dealing with tenants has been very stressful. I still have a squatter in the basement, who hasn't paid rents for 2 years. If I sell it, I have to wait for the moratorium to expire and the earliest time I can go to court is September. I may not be able to sell until next year. If I keep it, I plan to hire a management company and rent the upstairs for now. It's going to be 6-9% of rental income, which is around 3k.
If I sell, I don't have an immediate need for this money. I probably will invest it, but don't really what to do. Housing market in NY doesn't look very hot. I probably will have to wait for a few months to sell.
Any advice on whether to sell vs keep it and if I sell, how to invest the money of around 700k? Any advice on this would be appreciated. Thank you for your time.
It's a pain to maintain/manage it for me since I'm out of state. Dealing with tenants has been very stressful. I still have a squatter in the basement, who hasn't paid rents for 2 years. If I sell it, I have to wait for the moratorium to expire and the earliest time I can go to court is September. I may not be able to sell until next year. If I keep it, I plan to hire a management company and rent the upstairs for now. It's going to be 6-9% of rental income, which is around 3k.
If I sell, I don't have an immediate need for this money. I probably will invest it, but don't really what to do. Housing market in NY doesn't look very hot. I probably will have to wait for a few months to sell.
Any advice on whether to sell vs keep it and if I sell, how to invest the money of around 700k? Any advice on this would be appreciated. Thank you for your time.
Last edited by Kunkunlou on Sun Jun 13, 2021 1:13 pm, edited 1 time in total.
- anon_investor
- Posts: 15122
- Joined: Mon Jun 03, 2019 1:43 pm
Re: Should I sell my investment property?
Will you get $1 mil even with the squatter?Kunkunlou wrote: ↑Sun Jun 13, 2021 1:03 pm I have a house in queens NY, but I live in the Midwest right now. If I sell it now, it's probably going to be around 1 million. I have mortgages of 220k.
It's a pain to maintain/manage it for me since I'm out of state. Dealing with tenants has been very stressful. I still have a squatter in the basement, who hasn't paid rents for 2 years. If I keep it, I plan to hire a management company. It's going to be 6-9% of rental income, which is around 3k.
If I sell, I don't have an immediate need for this money. I probably will invest it, but don't really what to do. Housing market in NY doesn't look very hot. I probably will have to wait for a few months to sell.
Any advice on whether to sell vs keep it and if I sell, how to invest the money of around 700k? Any advice on this would be appreciated. Thank you for your time.
- scorcher31
- Posts: 583
- Joined: Sun Mar 06, 2016 10:13 pm
Re: Should I sell my investment property?
I'm confused how there has been a squatter for two years. Cant they be evicted with police and arrested for trespassing. I wouldn't buy a property with an active squatter.
Re: Should I sell my investment property?
Is this a Covid-related squatter?Kunkunlou wrote: ↑Sun Jun 13, 2021 1:03 pm I have a house in queens NY, but I live in the Midwest right now. If I sell it now, it's probably going to be around 1 million. I have mortgages of 220k.
It's a pain to maintain/manage it for me since I'm out of state. Dealing with tenants has been very stressful. I still have a squatter in the basement, who hasn't paid rents for 2 years. If I keep it, I plan to hire a management company. It's going to be 6-9% of rental income, which is around 3k.
If I sell, I don't have an immediate need for this money. I probably will invest it, but don't really what to do. Housing market in NY doesn't look very hot. I probably will have to wait for a few months to sell.
Any advice on whether to sell vs keep it and if I sell, how to invest the money of around 700k? Any advice on this would be appreciated. Thank you for your time.
"The day you die is just like any other, only shorter." |
― Samuel Beckett
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Re: Should I sell my investment property?
The owner probably did not initiate eviction proceedings within the first 30 days.scorcher31 wrote: ↑Sun Jun 13, 2021 1:10 pm I'm confused how there has been a squatter for two years. Cant they be evicted with police and arrested for trespassing. I wouldn't buy a property with an active squatter.
https://www.investopedia.com/terms/s/squatter.asp
Re: Should I sell my investment property?
Yes they have a hardship declaration on file, but she started not paying even before covid. Because of covid, court is not evict tenant.
quote=Godot post_id=6063932 time=1623607947 user_id=135527]
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quote=Godot post_id=6063932 time=1623607947 user_id=135527]
Is this a Covid-related squatter?Kunkunlou wrote: ↑Sun Jun 13, 2021 1:03 pm I have a house in queens NY, but I live in the Midwest right now. If I sell it now, it's probably going to be around 1 million. I have mortgages of 220k.
It's a pain to maintain/manage it for me since I'm out of state. Dealing with tenants has been very stressful. I still have a squatter in the basement, who hasn't paid rents for 2 years. If I keep it, I plan to hire a management company. It's going to be 6-9% of rental income, which is around 3k.
If I sell, I don't have an immediate need for this money. I probably will invest it, but don't really what to do. Housing market in NY doesn't look very hot. I probably will have to wait for a few months to sell.
Any advice on whether to sell vs keep it and if I sell, how to invest the money of around 700k? Any advice on this would be appreciated. Thank you for your time.
[/quote]
- Sandtrap
- Posts: 19591
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- Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.
Re: Should I sell my investment property?
Are you able to sell this property immediately, for good value, "as is"?
j
j
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Re: Should I sell my investment property?
1031 into another property that is closer to home and less work / risk.
I like...
1)! land leases (you own the dirt, national chain builds out the improvements. They leave, you keep the improvements). A friend has a truck stop, Subway, mcD, Burger king, Dairy Queen, steakhouse, all on land lease. Great cash flows, no expenses or effort.... Take the money and run. Live in Tahiti, Tokyo, Toronto ....
2) NNN commercial prop, such as a building housing a national chain / non food... Tire shop!,
3) commercial rental storage units... For businesses, parking trucks, heavy equipment, lawn equipment, cleaning service vans....
Yes, definitely rid yourself of residential rental property (if possible). Life has enough of your own problems, you don't need to inherit all the problems of your tenants.
Rent only to wealthy boglehead seniors if you must own rental homes.
I like...
1)! land leases (you own the dirt, national chain builds out the improvements. They leave, you keep the improvements). A friend has a truck stop, Subway, mcD, Burger king, Dairy Queen, steakhouse, all on land lease. Great cash flows, no expenses or effort.... Take the money and run. Live in Tahiti, Tokyo, Toronto ....
2) NNN commercial prop, such as a building housing a national chain / non food... Tire shop!,
3) commercial rental storage units... For businesses, parking trucks, heavy equipment, lawn equipment, cleaning service vans....
Yes, definitely rid yourself of residential rental property (if possible). Life has enough of your own problems, you don't need to inherit all the problems of your tenants.
Rent only to wealthy boglehead seniors if you must own rental homes.
Re: Should I sell my investment property?
I think all of us can feel the frustration in your post. Which is the reason you should do everything you can t move along on ridding yourself of this. If waiting longer gets you more bank do the math and see how much more. Minus taxes and expenses over that time. I also had a couple investment duplexes and hated it.
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Re: Should I sell my investment property?
I think you need to deal with the tenant first before putting your place on the market. You will be selling at a discount if you try to pass on the problem to the buyer. Not sure how strong the tenant protections are in your location, your squatter may “lawyer up” and angle for relocation compensation if she catches wind that you are selling.
Re: Should I sell my investment property?
1. Aggressively deal with squatter.
2. You wrote it is worth $1m and you have $200k mortgage. So if you had $800k to invest would you chose to use is to buy this property? If no, sell.
3. Now that you have owned rental property, do you like being a LL? Do you have significant capital gains? Are you trying to pass those on to your heirs tax free, and if so, is it worth the work, especially as you age? If yes to all, 1031 into a property closer to where you are. If answer to any of these is no, just sell and invest invest in BH portfolio.
2. You wrote it is worth $1m and you have $200k mortgage. So if you had $800k to invest would you chose to use is to buy this property? If no, sell.
3. Now that you have owned rental property, do you like being a LL? Do you have significant capital gains? Are you trying to pass those on to your heirs tax free, and if so, is it worth the work, especially as you age? If yes to all, 1031 into a property closer to where you are. If answer to any of these is no, just sell and invest invest in BH portfolio.
Re: Should I sell my investment property?
Sell. Invest.Kunkunlou wrote: ↑Sun Jun 13, 2021 1:03 pm I have a house in queens NY, but I live in the Midwest right now. If I sell it now, it's probably going to be around 1 million. I have mortgages of 220k.
It's a pain to maintain/manage it for me since I'm out of state. Dealing with tenants has been very stressful. I still have a squatter in the basement, who hasn't paid rents for 2 years. If I sell it, I have to wait for the moratorium to expire and the earliest time I can go to court is September. I may not be able to sell until next year. If I keep it, I plan to hire a management company and rent the upstairs for now. It's going to be 6-9% of rental income, which is around 3k.
If I sell, I don't have an immediate need for this money. I probably will invest it, but don't really what to do. Housing market in NY doesn't look very hot. I probably will have to wait for a few months to sell.
Any advice on whether to sell vs keep it and if I sell, how to invest the money of around 700k? Any advice on this would be appreciated. Thank you for your time.
Re: Should I sell my investment property?
Or find a figure both you and the squatter agree is sufficient to get them to leave, pay them off, then sell the property. It's a repulsive solution, but this is the situation you're in and there aren't many other alternatives. What's it worth to you to get the selling process under way 2-6 months early?
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers