What should I do about my two rental properties?

Question: What should I do about my two rental properties? Property #1 obviously isn’t bringing the ROI I expect. I don’t think property 2 is as well. I could probably maximize my ROI by cashing out on P1 and splitting it between 3 SFHs, or a small apartment complex? Would that be wise considering my financials? What am I not seeing? What else could I do? Other thoughts have been to cash out P1 and purchase land.

35M single, no student debt, no car note. Income @ 140k in low COL city.

I have 275k spread across the following portfolios:

50k in brokerage, 180k in retirement account. 30k in checkings. 15k in HSA.

I also own three properties:

Property 1

Bought 2019 @ 272k. Zillow currently estimates it at 440k. 3.5% 30 year conventional mortgage loan. Had put 20% down at time of purchase.

Income at 2.3k per month rent. $27.6k rent collected -$7.2k mortgage interest – $4k property tax -$1.3k insurance -$3k repairs etc = $12k profit on estimated $235k equity.

Property 2

Bought 2021 @ 242k. Zillow currently estimates it at 265k. 4% 30 year conventional mortgage loan. Had put 20% down at time of purchase.

Income at 1.7k per month rent. $20.4k rent collected -$7.8k mortgage interest – $1.8k property tax -$1k insurance -$2k repairs etc = $7.8k profit on estimated $75 equity.

Property 3

Primary home. Bought in 2021 @ 440k. Zillow currently estimates it at 560k. 2.5% 30 year conventional mortgage loan. Had put 10% down at time of purchase. Currently no PMI.

submitted by /u/ipromisetobehave
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Question: What should I do about my two rental properties? Property #1 obviously isn’t bringing the ROI I expect. I don’t think property 2 is as well. I could probably maximize my ROI by cashing out on P1 and splitting it between 3 SFHs, or a small apartment complex? Would that be wise considering my financials? What am I not seeing? What else could I do? Other thoughts have been to cash out P1 and purchase land. 35M single, no student debt, no car note. Income @ 140k in low COL city. I have 275k spread across the following portfolios: 50k in brokerage, 180k in retirement account. 30k in checkings. 15k in HSA. I also own three properties: Property 1 Bought 2019 @ 272k. Zillow currently estimates it at 440k. 3.5% 30 year conventional mortgage loan. Had put 20% down at time of purchase. Income at 2.3k per month rent. $27.6k rent collected -$7.2k mortgage interest – $4k property tax -$1.3k insurance -$3k repairs etc = $12k profit on estimated $235k equity. Property 2 Bought 2021 @ 242k. Zillow currently estimates it at 265k. 4% 30 year conventional mortgage loan. Had put 20% down at time of purchase. Income at 1.7k per month rent. $20.4k rent collected -$7.8k mortgage interest – $1.8k property tax -$1k insurance -$2k repairs etc = $7.8k profit on estimated $75 equity. Property 3 Primary home. Bought in 2021 @ 440k. Zillow currently estimates it at 560k. 2.5% 30 year conventional mortgage loan. Had put 10% down at time of purchase. Currently no PMI. submitted by /u/ipromisetobehave [link] [comments]

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