I co-own a duplex. Should we sell even if it’s co-owners primary residence?
- purchased in 2022 for $312,000 (was listed $350,000)
- currently owe $278,000
- appraised value $350,000
- rental value $1350 each side
- mortgage $2950
- co-owner lives onsite. Only one side of double is rentable
- retable side currently vacant (did have a 1 month long lease for $2400)
- both sides need new AC. Quoted 12k or 0% interest $850 per month
My opinion:
Not cash flowing. Has not appraised much. Taxes and insurance keep going up. Southern city with annual hurricanes. Think it’s better to cut loses then continue to invest money in the hopes the market turns or we can STR.
I have other rentals that do currently cash flow that I own independently.
Co-owner opinion:
We are in an economic down turn so not a good time to sell.
I think as it’s their primary home it’s different for them to invest money in it or not make any off of it.
Over saturated market.
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I would like to sell. If we don’t and I can rent it for $1450 or so furnished and I don’t pay anything else out of pocket and she covers all other expenses I’d be fine, but that’s not realistic with needing a new AC or maintenance cost.
So is it a good time to sell? Would you try and get STR approval? Would you try and do more monthly or mid term rentals and break even?