I have a house in Southeast Austin. We purchased a Lennar new construction home in 2008 for 138K at 5.25% and put no money down (i know that was a bad idea), we currently owe 95K. We haven't lived in the house in 6 years after moving to Okalhoma. We have had the same renters, that have been amazing, in our home for 4 years that cover over the cost of the mortgage and property taxes. We have had minimal expenses thus far with upkeep of the home. It has increased in value and Zillow (estimates) the house now at 222,000. The lease will end next July and I want to plan ahead. We have no other debt aside from another mortgage in Oklahoma. My concerns are that since the home is 10 years old that I will need to plan for some major expenses and if they will eat too much of the profits. I know I can write off the expenses when the house is sold but we don't have a lot to spend on any major repairs. I also know that I will have to pay depreciation recapture taxes. Austin is growing at a fast rate, especially toward the east side and I don't want to make the wrong decision since we already have a good thing going with our renters and the growth. But I know the money made from the sale will go towards investing in our current home and investing in other ways. It's a good problem to have but just looking for opinions from others that may have gone through this. Thanks for any input.
Submitted September 17, 2018 at 12:56PM by chacaron1 https://ift.tt/2xiXFYx
