Real Estate Investor Says Their Rental Property Has Nearly Doubled In Value. ‘Am I Crazy To Want To Sell A 2.75% Rate Rental?’
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A real estate investor is questioning whether it still makes sense to hold onto a rental property that has nearly doubled in value since purchase, despite having a 2.75% mortgage.
Posting in the r/realestateinvesting subreddit, the user explained that they and their wife bought the home in suburban Boulder, Colorado, for $450,000 in 2015. It’s now worth about $850,000. Originally their primary residence, the house was turned into a rental in 2020 when they moved out of state.
“I would very much like to sell our rental property,” they wrote. “My wife disagrees. I’m looking for clarity — should we sell?”
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On the surface, the numbers appear strong. The home cash flows about $500 a month after expenses, and the principal is being paid down at a rate of $8,000 per year. But the owner pointed out that rising property taxes and insurance costs have eaten into returns. In addition, tenant turnover, ongoing maintenance issues and large upcoming repairs — including mold remediation and new siding — are weighing on their decision.
“Repair and maintenance have eaten away at most of our cash flow,” they wrote. “Recent example: $12,500 (estimated) for mold remediation, plumbing, and sprinkler repair.”
Their property manager takes 10% of monthly rent, and while the house is located in a desirable school district, the owners live across the country and find it difficult to manage everything from afar.
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In response to the post, many redditors said the financial return no longer justifies holding the property.
“Don’t keep a poorly returning asset for a low mortgage,” one user wrote. “If this was making you $50,000–$100,000 per year it might be different, but it’s not.”
Another pointed out that with about $500,000 in equity, selling and investing in the stock market could result in much better returns: “$500,000 at a conservative 8% return is $40,000 per year ($3333.00 per month).”
Several users emphasized that emotional attachment should not drive financial decisions. One wrote, “Never let emotions or terms like ‘dream house’ cloud good judgment. I’ve seen people bankrupt themselves because they couldn’t sell their ‘dream house.’”
Others said selling now and doing a 1031 exchange — a strategy that lets investors defer capital gains taxes by reinvesting the proceeds into another property — into a more profitable or local property would make sense.
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Still, some commenters believe the 2.75% mortgage is too valuable to give up.
“Get rich slow,” one wrote. “You’re cash flowing, taking the depreciation every year, principal pay down. I would keep it for sure.”
Another added: “Property creates generational wealth or provides income in retirement once it’s paid off.”
Some suggested alternatives like switching property managers, refinancing, renting by the room, or even seller financing to create a more passive income stream without selling outright.
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The original poster said they would net around $400,000 after taxes and costs if they sold. Their plan would be to invest most of it in a three-fund portfolio consisting of U.S. and international stocks and bonds. But the wife has hopes of one day returning to live in the home.
“CO is definitely ‘home’ in our mind,” they said. “But realistically, I don’t see that happening until a more traditional retirement age (20+ years for us).”
With a lease ending in July and no clear decision yet, the couple finds themselves weighing short-term stress against long-term potential.
“I am very concerned about this thing costing us more now for the sake of potential return later,” the poster wrote. “I think you’re correct that maintenance will consume any gains.”
Whether they choose to hold or sell, most Redditors agreed on one thing: there isn’t a one-size-fits-all answer. But given the shrinking returns and increasing headaches, many believe that cashing out now might result in more peace of mind — and a better return.
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