01-07-2022, 03:13 AM
Help me understand real estate investing better. I have $800k invested in a rental…
<!-- SC_OFF --><div class="md"><p>I owe $260k (3% 28yrs left) on a property valued at 800k. My monthly expenses are $2000 (taxes, insurance, principal, interest and misc maintenance) and my rent income is $3400. (For this property) I’m considering selling the property to buy a different home cash and no longer pay the bank interest. </p> <p>I would also save because I would no longer need to rent a house myself and can live in the house I buy. </p> <p>I can’t come up with a counter argument for doing this but I’m not great with understanding % returns or how to value real estate positions. What am I missing?</p> <p>Edit: I qualify for capital gains exemption on the property in question. Up to the first $500k</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/KitsapDad"> /u/KitsapDad </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/rxpz78/help_me_understand_real_estate_investing_better_i/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/rxpz78/help_me_understand_real_estate_investing_better_i/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I owe $260k (3% 28yrs left) on a property valued at 800k. My monthly expenses are $2000 (taxes, insurance, principal, interest and misc maintenance) and my rent income is $3400. (For this property) I’m considering selling the property to buy a different home cash and no longer pay the bank interest. </p> <p>I would also save because I would no longer need to rent a house myself and can live in the house I buy. </p> <p>I can’t come up with a counter argument for doing this but I’m not great with understanding % returns or how to value real estate positions. What am I missing?</p> <p>Edit: I qualify for capital gains exemption on the property in question. Up to the first $500k</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/KitsapDad"> /u/KitsapDad </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/rxpz78/help_me_understand_real_estate_investing_better_i/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/rxpz78/help_me_understand_real_estate_investing_better_i/">[comments]</a></span>Kind Regards R