I saw the two questions previously, but didn’t think they were serious. A $4000 a year tax advantage is nice, but not the sole decision making item in a investment property decision. My thinking would go much like CAR’s above.
If I kept the house, it wouldn’t be because it had a $4000 tax advantage. I’d keep it because it was owned with no debt and generated a cash flow of around $15000 a year.
I’d sell for a variety of reasons, problematic neighborhood. I’ve seen some neighborhoods really turn to junk, while others gentrify. The difference is sometimes just a few blocks.
Would an ADDITIONAL $4000 tax bill increase my prospective of selling it? Yes, it would create a little less appetite for the deferred maintenance, remote landlording. The equation just become it’s free and clear and generates $11,000 instead of $15,000.
There’s a counter point to you discussion too. I’ve bought rental properties in the last five years. Take prop thirteen away, and I’d be passing sizeable rent increases on to tenants. Don’t think long term landlords are go prevent it either, they’ll all see the increases in property tax as an increase in expenses and raise rents with it.
