Should I sell my investment property?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Kunkunlou
Posts: 13
Joined: Sun Jan 10, 2021 2:04 pm

Should I sell my investment property?

Post by Kunkunlou »

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.
Last edited by Kunkunlou on Sun Jun 13, 2021 1:13 pm, edited 1 time in total.
User avatar
anon_investor
Posts: 15122
Joined: Mon Jun 03, 2019 1:43 pm

Re: Should I sell my investment property?

Post by anon_investor »

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.
Will you get $1 mil even with the squatter?
User avatar
scorcher31
Posts: 583
Joined: Sun Mar 06, 2016 10:13 pm

Re: Should I sell my investment property?

Post by scorcher31 »

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.
User avatar
Godot
Posts: 1016
Joined: Fri Jun 08, 2018 3:44 pm
Location: That place.

Re: Should I sell my investment property?

Post by Godot »

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.
Is this a Covid-related squatter?
"The day you die is just like any other, only shorter." | ― Samuel Beckett
retire2022
Posts: 3286
Joined: Tue Oct 02, 2018 6:10 pm
Location: NYC

Re: Should I sell my investment property?

Post by retire2022 »

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.
The owner probably did not initiate eviction proceedings within the first 30 days.

https://www.investopedia.com/terms/s/squatter.asp
Topic Author
Kunkunlou
Posts: 13
Joined: Sun Jan 10, 2021 2:04 pm

Re: Should I sell my investment property?

Post by Kunkunlou »

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]
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.
Is this a Covid-related squatter?
[/quote]
User avatar
Sandtrap
Posts: 19591
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: Should I sell my investment property?

Post by Sandtrap »

Are you able to sell this property immediately, for good value, "as is"?

j :D
Wiki Bogleheads Wiki: Everything You Need to Know
Topic Author
Kunkunlou
Posts: 13
Joined: Sun Jan 10, 2021 2:04 pm

Re: Should I sell my investment property?

Post by Kunkunlou »

Not really. There will be huge discount
Sandtrap wrote: Mon Jun 14, 2021 7:28 am Are you able to sell this property immediately, for good value, "as is"?

j :D
Wash.Invest
Posts: 703
Joined: Sat Jun 13, 2009 1:25 am

Re: Should I sell my investment property?

Post by Wash.Invest »

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.
dcop
Posts: 364
Joined: Fri Sep 08, 2017 6:06 pm

Re: Should I sell my investment property?

Post by dcop »

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.
srt7
Posts: 1357
Joined: Mon Sep 29, 2014 12:19 pm

Re: Should I sell my investment property?

Post by srt7 »

Sell it.
Taking care of tomorrow while enjoying today.
WealthConstructor
Posts: 21
Joined: Sat Feb 09, 2019 8:51 am

Re: Should I sell my investment property?

Post by WealthConstructor »

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.
Saving$
Posts: 2518
Joined: Sat Nov 05, 2011 8:33 pm

Re: Should I sell my investment property?

Post by Saving$ »

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.
reln
Posts: 718
Joined: Fri Apr 19, 2019 4:01 pm

Re: Should I sell my investment property?

Post by reln »

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.
Sell. Invest.
WhyNotUs
Posts: 2610
Joined: Sun Apr 14, 2013 11:38 am

Re: Should I sell my investment property?

Post by WhyNotUs »

Evict and sell
I own the next hot stock- VTSAX
User avatar
Marmot
Posts: 592
Joined: Sun Oct 10, 2010 1:44 pm
Location: Phoenix, AZ

Re: Should I sell my investment property?

Post by Marmot »

WhyNotUs wrote: Tue Jun 15, 2021 7:29 am Evict and sell
Sell, sell , sell (Mortimer from trading places). Move on.
Marty....don't go to the year 2020....Dr. Emmett Brown
spectec
Posts: 1828
Joined: Mon Jul 14, 2014 8:00 am

Re: Should I sell my investment property?

Post by spectec »

WhyNotUs wrote: Tue Jun 15, 2021 7:29 am Evict and sell
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
Post Reply