I became an accidental landlord, when I bought a house 3 years ago, and did not sell the house I had lived in for 10 years.
Here are the facts:
- House purchased: $200,000
- House Mortgage remaining: $162,000
- Rental History: 3 years at $1750 a month
- Rental Maintenance:
Year one $6500 roof replacement,
Year 2 ~$3000 in appliance maintenance,
Year 3 ~$9000 in repairs after the 3 year tenants ruined the inside of the house
- Property Management: $175/month
- Taxes, Insurance, Interest: ~7500/year
- House Value: ~$255,000
- Home improvements since purchase:Approximately $15000 in upgrades while I lived there. Deck, hardwood floors, countertops, etc.
It seems to me like I am better off selling and investing the gains in my stock portfolio, but I would like to hear other opinions. The house just got finished with the renovations after the last tenants, so it is in tip-top shape. I also think I could rent it for $1900/month and possibly lose the property manager. The house seems to be appreciating in value, but I think it would take at least a few more years to get to, say $300,000 in value.
I hope most of the maintenance is DONE for a while on the house, but the tenants destroying the inside really stings this year (had been good tenants for ~3 years until the end), and makes me think I am done dealing with the property.