07-18-2020, 05:38 PM
(07-18-2020, 02:48 PM)Apoc Wrote: I spent 30 years in Fairfax and Loudoun County - never stepped foot in Massanutten once but have been to all the other places mentioned. shrug
Remember you have to deduct your mortgage interest from your gain. You aren't making 6% on the full house amount, you're making 6% on your equity and roughly 3% on your mortgaged value. Based on your numbers, you're making about 4.25% to keep the place. That's a losing prospect against the market. Don't forget it would also cost money to refinance and put money down for PMI. Subtract more if you're paying someone to manage the property. I think a 2-3% rate of return is more accurate in your situation.
What's the break even on refinancing and closing costs? It's got to be a few years. Seems crazy to me to refinance if you think you might sell it before you break even... especially if you don't need to get from under the VA loan at this point.
He is renting it out. ROI should be in the 15-20% on equity. I wouldn’t invest 6 hours away in massunetten though. Heck I’m not even investing where I live which is why I’m 45 minutes from them.
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