Re: Sedona, Arizona case study - Posted by dealmaker
Posted by dealmaker on March 16, 2006 at 08:51:24:
I’d be out of that pig, TODAY. You’re LOSING $6960 a year on it. Although congratulations are in order for being in a 43% tax bracket (not sure how you do that! I thought the top rate was 35%), you’re still losing $3960/year, plus the opportunity cost of your $17K downstroke and your closing costs.
It sounds like you’ve gotten some pretty good appreciation out of it, $50K in 2 years is sweet. You’ll still have some selling expenses but you should net about $208 or so.
I’m sure others here will tell you how it’s going to appreciate 1,000% in the next 10 years, etc. BS! I do this for PROFIT, not for LOSSES. If I want tax losses I’ll give my church.
I’d dump it NOW.