Hi all,
First time poster, long time listener of the various BP pods. 

I own a 2/1 condo in unincorporated Jeffco just outside of Golden, CO proper. Have had it for a year, and bought it to occupy with my fiancée before upgrading to an SFH.

Plan was to hang onto the condo with a tenant in it and hold for small cashflow and appreciation due to the desirability of Golden (we have a golden address and many don’t even realize we aren’t in the city). The average sale price in our zip was nearly $1 million at the time of purchase last year- it’s now down about 9% per Redfin. 

At this time last year-  units in the complex were renting for $1750/1800, which was about the same as my mortgage payment + condo fees. 

Today, similar units are renting as low as $1550-1600, while my mortgage + HOA fee is nearing $1950 monthly.

Obviously , the market has turned south AND the complex has increased monthly fees, along with adding a special assessment. The HOA is extremely incompetent- they only allow cronies of its president onto the board. The fee is $500 monthly for no amenities of any kind (the pool was filled in with concrete in the 1990's). The parking lot is riddled with potholes. The exterior stairways and landings are in very poor shape. abandoned / unregistered cars sit in the parking lot, homeless sometimes camp out, etc.

On top of this, our little sub market is being discovered. New luxury rental buildings have come online, one just broke ground half a mile away, and another is approved and will go up right next door (200 rental units). It is in a “path of progress” as far as being the cheapest area of a very expensive, desirable town. 

Choices are:

A. I paid $259k, and could realistically unload it for $225k today. 

B. Or I could rent it out and negative cash flow at roughly $325/month. 

My concerns: 

There is a real risk of a even higher negative cash flow after the next budget is rubber stamped. The complex also lost FHA status due to it having far more tenant occupied units than owner occupied (they don't official track this, violating their own by-laws).

 Conventional loans are still possible, but harder to get because the master insurance policy on the roof is inadequate.

Finally, reserves are very low.  The building is 50 years old and full of deferred maintenance.  Many owners bought a long time ago and aren’t involved in the management of the community.  

Short term rentals under 30 days aren’t allowed. Some owners appear to try advertising 30 day+ stays on various platforms. 

For a “TLDR”:

Should I keep a condo in a gentrifying area, but in a very troubled complex, and bank on future appreciation? This would lose $325 a month, and probably a lot more after the next budget is ratified. It would likely take years for my value to recover in real $ to the purchase price, let alone higher  

Or should I “rip off the band aid,” and unload a condo that negative cash flows and likely will for the foreseeable future given the state of the Denver market, as well as new, much nicer units being built in the immediate area?    I’d lose about $50k doing this. 

For what it’s worth, an agent thinks I should hang onto it. There are 8-9 other units in the complex for sale currently, all of which have had price cuts or fallen out of contract. 

Thank you for any insights you may have and sorry for being long winded. I felt the nuance of the condo issues were germane to the choice here.