Sell at loss or rent at loss?
Hi all,
I bought a 3b 2.5b townhome in a rougher part of Raleigh in 2022. I definitely overpaid and was a bit misguided. It was my first and only investment and has overall been a really challenging and discouraging experience. The house has really only worked as a house hack with mid-term tenants, but I am looking to move out of the city and property managers won't manage mid-term. I am trying to decide if I should sell or rent.
Renting would put me at -$220 a month.
Selling is looking like a $30k- $45k loss. I tried selling at a point that would amount to a less than $10k loss for me/ closest to break even earlier this summer but didn’t get any bites. About a month ago a home a few doors down sold for $20k less than I paid 2 years ago, around the same amount I have left on my loan. Mine is an end unit, but the comps are looking pretty similar to this property. I looked into a cash offer just to free myself but the offer was painfully low (putting me at a $60k loss). I understand at this point there will be a loss I will have to incur, but I am looking for thoughts on if I should rent (knowing I’ll have around $5k a year to loose with renting and property taxes , but giving myself time/ hope of appreciation) or if I should just sell (locking in a larger loss on the property now).
Most Popular Reply
@Addie Burchell There should be some tax benefits to help offset the $220/month loss in terms of write-offs and depreciation. If you think the market will get better in the next few years it might be better to hold onto it.