To sell or not to sell real estate? That is the question I present to you.
I am twenty eight years old, and five years ago purchased a HUD home at auction through a no interest loan from a close family member. I proceeded to completely renovate the house and currently generate $5100 a year in revenue from rent. I moved to NYC and use this income to subsidize the absurd rate of rent in NYC. I have a healthy secure job where I am at the upper hierarchy of the company and earn enough to budget accordingly so I can set aside enough to work towards my personal financial goals.
The same family member who I originally received the loan from has offered to buy the house from me and I stand to earn $40-50k after paying of what I owe. In the event of their passing I would be willed the house among other assets.
The pros are numerous and I would be able to put into a money market account at least 3-6 months of expenses, top off my IRA for 2014, finish emergency fund, be debt free, have investment capitol, and have the collateral to fund my dreams.
The downside is I loose that external source of income from the rental, which accounts for almost 30% off my rent and looking a few years down the road could make a substantial difference.
Somehow these pros and cons, in my mind are equaling out and I feel I have developed tunnel vision here on this decision. So your outside opinion would be greatly appreciated. Keep the house and grow financially strong slowly with security, or sell now and become financially free now? If I decide to sell how can I make the additional $15-20k grow to upset that loss of income?
Thank you all.