Sell condo or Keep it for rent

[Vipul Beriwal]

Hello Community,

Currently I own a townhome (not primary home) in San Jose. The mortgage + property tax + Hoa comes out to be $5500, with interest rate 6.625% 30 year fixed 

I did put it on market and with all commissions and fees i am making a loss of 50k If i sell it it in todays market. I put it to sell on peak but the tariff pulled the market back.

If i put it on rent, in order to break even, I need to sell my tech stocks and put ~240k towards the principal. 

Question: I want to get the genuine advice from you guys. Should i sell the unit and bear 50k now. Or sell the stocks (over time) put it condo and wait for 4-5 years gor confo market to recover and then try to sell on higher price, get some renters and be a landlord.

thanks!

[Wilson Lau]

Instead of putting more money down to bring it to breakeven, why not just rent it out and take the monthly loss. You can increase rent over time and possibly refinance it down the road to close up the gap. At the same time, you can keep your ~240k in stock or invest in other means.

Our team has a couple of townhouses on the market now across San Jose, and I have to say the market has been a lot slower compared to a regular Spring season. I also advised several of my clients to hold off selling until we have more certainty in the market. Please reach out, and I'm happy to run some numbers for you.