My rental apartment at this point is making me a 5% ROI per year. My bank is currently charging me a 5.87% Interest rate on the mortgage, which means I am putting from my pocket to keep this apartment every year.
Not including my retirement, I want to use my savings to pay out the apartment. At this point my savings are not making more than 2% ROI on their current instruments.
The option of selling the apartment is not available at the moment since there is a bad economic situation in the area, especially the housing market.
After reading through the answers and comments I went ahead and did my calculations again, and I don't think I am doing as well as I thought with this property. I completed two calculations, (1) Rent from Income minus Expenses including mortgage and (2) assuming I paid off my mortgage, Rent from Income minus expenses by cash to pay mortgage
On the first scenario, the calculation came out to be -27.80% ROI a year. Of course I am not counting that this is paying off my principal (which I have no idea how to include in the calculation)
On the second scenario, the calculation came out to be 5.74% ROI a year. That is (Income - expenses / cash investment to pay off debt)
From the first calculation I got that if I reduce my monthly mortgage payment 32% then I will be breaking even, which at that point I can either increase rent. The problem is this damm banks are charging a fortune to refinance my house. 5K is the least expensive quote I have.