I have a small rental property that I got out of a divorce. I currently rent it out for $850/mo. My mortgage on it is $550/mo, and I also have a HELOC on the house that costs me $200/mo, so all in all I’m bringing in about $100/mo off of it. The HELOC would be paid off in about 4 years, and at that point I would be making $300/mo off the house. I don’t usually have a hard time getting good renters in.
My total debt load (including the HELOC) is about $21,000. I’m struggling to make payments on all this debt, although hoping to get some headway with a tax return this year.
The house currently has about $22,000 in equity.
I’m trying to figure out if I should sell the house and attempt to pay off most all my debts, or continue to rent it and build more equity.
I’m a little afraid the house might not sell right away (it has some downfalls), and then I’d be stuck paying the mortgage while it’s on the market.
Thank you for any thoughts/opinions/advice.