I bought a home in 2000 before I met my wife. I paid 50,000 for this property and it is now valued at triple that amount. We married and moved but I kept this property as an investment property. The tenant in the home has been there for 15 and has been fabulous. The rent that I'm charging is no longer making sense as an investment property. I'm breaking even. Ok, I'm lying.... I'm coming out of pocket maybe a thousand dollars a year. My wife wants me to sell the property but I want to keep it a little longer. My elderly tenant has been great but fell on hard times because of serious health issues. She still remains to be able to pay the rent but can not afford an increase at this moment. I tried to refinance the investment property but realize I would only be saving an additional 125.00 a month with closing cost costing 3945.00 I would not break even for 3 years. I was thinking about doing a streamline refinance but it doesnt really benefit me. My property is not under water. I was thinking about doing a HELOC loan. I would only do this if I fell on hard times or needed income to repair something major in my primary or investment property. The issue is that the rent has remained the same for many years but the mortgage has gone up due to property tax hikes. As a result, the rent I am charging basically covers the mortgage. Any suggestions? I can get so much more money in rent but because this tenant has been so great and my previous tenant before her was so horrible I feel like I have to stick it out with her and now she is sick. My wife said I don't have the stomach to be a landlord and would like for me to sell the property. Doing so would provide a very good return. However, I don't want to do that to the tenant and also, I really have no interest in selling this property as I do feel like the longer term investment potential exists.
All that said, just looking for an outsiders opinion on what they think and also if you have any suggestions for different options. I can't continue to take the loss on this property. But I don't want to get rid of this property and I also don't feel like I can raise the rent for this tenant (with a new tenant I would probably get double the rent).
What are your thoughts on my conundrum?