This has been an interesting exercise, considering what to do w/ our 6 properties at a time when selling them is not only difficult but possibly the worst thing to do with them because of the market. Waiting would get a better price (if we could wait long enough) but meanwhile they cost, and keeping them is hardly a streamlined, simplified, mission-friendly state of affairs.
At the same time we have just done our 2007 taxes and found out how much financial benefit we get from the properties even when they are empty.
Rentals have 3 advantages: income from the tenant, thus essentially having someone else pay the mortgage, taxes, etc.; appreciation from selling it a few years down the road; tax savings due to depreciation.
So we have decided not to sell, at least not fire-sale fashion.
Here are some details:
Bonnie and family are moving into our Sallee Place residence, paying us what they are paying for their current house. We have the benefit of not having to screen possible tenants, and we can leave a few things here for them, such as unopened jars of mayonnaise or Nana's buffet.
We are listing the Benson house as a rent and lease-option. This should give us some positive cashflow shortly.
We are listing the Rye Court property in Anacortes as a rental, after a few months of having it for sale this summer. We'd like to sell it - it is our costliest property.
The other Anacortes house is already rented for the next 2 1/2 years, and may end us on a lease-option with the current tenants.
All these possibilities are just that right now, though we are focusing on bringing them about one by one.
So simplification, our desire, is running up against the realities of the market. Waiting 3 years to sell may well mean we get a decent price for each of them, which of course would buy us more options on every front.
Your thoughts?
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3 comments:
I think that's the best. I've been thinking that since you fist raised the issue. This is the worst market to sell, but I had the impression there was more of a need than I perceive here.
I think this will ultimately be the better financial decision.
I have no credentials to say any of that. But my uneducated opinion is still my opinion!
C.
We are torn among common sense in this market, the desire to simplify, and the urge to get out of debt.
We have been putting a great deal of emphasis on getting out of debt. Selling one property and using the proceeds to pay down another mortgage would hasten the process considerably.
So where is the wisdom? We plod along step by step, listening the while... PL
It sounds like you have things falling into place. Very good!
Martie
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