Beth, Other/Just Looking in

I have a rental property in Burlingame that I bought as a primary residence in 2004. I love Portland and

Asked by Beth, Sat Nov 3, 2007

would like to move back but not sure that will happen in the next 5 years. Should I keep renting it or sell it?

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I can't speak for your personal situation, but from a real estate standpoint, now is not the best time to sell. If you have good renters and anything close to positive cash flow, don't sell now. Your rental is now a business, so be sure to deduct all expenses and depreciation on your taxes to help increase your cash flow. Talk to your tax advisor about this.
1 vote Thank Flag Link Tue Jan 8, 2008
Your question is a good one that deserves a conversation, rather than an online answer. I suggest talking with your tax accountant first. Then find a good realtor to determine the value of your property and match that up with the tax consequences and your financial objectives.
Web Reference: http://www.darinprovost.com
1 vote Thank Flag Link Tue Dec 11, 2007
I have never regretted keeping a property and renting it, however, I have regretted selling a property that could have been retained as a rental. That being said, here's some questions you need to address before making your decision: Will the property rent at break even or positive? Do you need the equity from the property for another purchase? Will the property rent quickly? Will you need a management service or will you manage the property from a distance? Are you cut out to be a landlord - that is, can you detach yourself emotionally from the property and treat it like any other asset, even if a tenant damages the structure, landscaping, carpeting, etc, and simply make the repair and prepare the property for the next tenant? As a rule of thumb, no tenant will treat a property the same way as if they owned it. Be prepared for wear and tear, and know that you will probably have to spend some money after a few years of occupancy, and certainly so when you are ready to move back in. Good luck, Roger Reid - REMAX, Tempe, Arizona
1 vote Thank Flag Link Thu Nov 8, 2007
I have always regretted selling property I could have continued to own--including a home I once owned in the Burlingame neighborhood near Capitol Hill School. My thought would be to be sure you can keep the home well maintained over the years if you do plan to keep it so you don't have any major problems accumulate. Of course you should consult your tax advisor. And without a crystal ball, it can be difficult to see where the future may lie in real estate; at this time it looks like property values in Portland have mostly held there own but we all know we can't see the future. Best of luck to you with whatever decision you may make.
0 votes Thank Flag Link Wed Dec 12, 2007
Are you getting positive cash flow? As a realtor and an investor, my personal strategy is to accumulate as much as possible.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat Nov 3, 2007
Cindi Hagley…, Real Estate Pro in San Ramon, CA
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