Should I sell a condo with negative cash flow?

[Cara Wells]

Hi all,

I have a 1BR condo in a very desirable location just outside Washington DC (Alexandria, right off King Street). I bought it for $280K in 2006, could sell for $265K, and currently owe $233K.

My main concern is my negative cash flow. My monthly expenses are $1938, and I rent the condo for $1800. My PMI - $159 - will drop in 2 years and I'll have slightly positive cash flow. Each month $400 goes to my principal payment.

I've seen a lot of different opinions on BP. Am I foolish for holding onto this property, or am I on track playing the long game? It's in an amazing community that was just extensively upgraded (everything from front doors to new insulation, siding, etc) so there are no planned assessments.

I also just moved to Alabama and am self-managing. The $400/property tax I'm paying in VA is making me cringe when I compare it to the $100/month I pay here on a similarly priced home.

Cara