Editor’s note: This article incorrectly stated the typical depreciation schedule used by investors for a rental property. Under the Modified Accelerated Cost Recovery System, generally the depreciation schedule is 27.5 years for a residential rental property placed into service after 1986.
DEAR BERNICE: My husband and I just relocated from Los Angeles to Arizona. I rented my condominium in Los Angeles and it’s currently costing me about $500 per month over what the tenants are paying me. I bought it back in 2002 and still have equity in it, despite the downturn.
We found a really good deal on a house here in Arizona. The challenge is that it’s really hard making the payments on both because my husband is still in school. He will be graduating in May and our income will go up then. I’m wondering if it would be smart to sell my condominium in Los Angeles to make it easier for us to make the house payments. –Liz W.