Hi everyone just looking for some advise. I bought an out of state property in San Antonio in 2022 , market was different back then and now my tenant has left and looking for a new tenant. However it looks like rental market is now $150-200 less monthly and i will be in negative cashflow whereas before I was breaking even. Would it be better to sell in this case ? Thanks
I'd look at the long-term picture before selling. A temporary negative cash flow of $150–$200/month may be worth holding if you're in a strong location with good appreciation potential. Compare the cost of holding the property against what you'd net from selling after agent commissions, closing costs, and taxes. If the numbers don't make sense long term or the property no longer fits your investment goals, then selling could be the better option. I'd also check whether small upgrades or adjusting your marketing could help attract tenants closer to your target rent.
Hi Anthony. San Antonio is a tough LTR market. I decided to do a short term rental there and it is doing great. Where in San Antonio are you and would you be willing to switch to mid or short term rental?
Hi everyone just looking for some advise. I bought an out of state property in San Antonio in 2022 , market was different back then and now my tenant has left and looking for a new tenant. However it looks like rental market is now $150-200 less monthly and i will be in negative cashflow whereas before I was breaking even. Would it be better to sell in this case ? Thanks
@Anthony Kono Before deciding to sell, I'd compare the property's long-term appreciation potential, current equity, and the true monthly carrying cost after realistic market rents. If the negative cash flow is relatively small, it may still make sense to hold depending on your long-term goals. If not, a 1031 exchange into a stronger-performing property could also be worth exploring.