To Keep or To Sell... Help Requested!?

Question

I have a rental property that I have owned for the past 6 years. I am considering selling it. I am going to provide you details on the home. I want you to help me decide what I should do. I want you to pull the most recent data as of March 2026. Here is the information.

Address:  East Dr Gastonia NC. 2 bed 2 bath + Office. 1930 build.

Loan Amount Left: $108,000

Interest Rate: 4.375%

Monthly Payment: $763.14

Renovation Money: Recently I put $30,000 to renovate and update it. I will need another $15,000 to get it ready for rent depening on cost of ffoundation work that I will need quoted out this week. If I were to get it fully market ready, it coulst cost anouther 50-75K+.

Market Rent: $1300-1400

Any suggestions!? I am leaning towards moving on from it.

Drew Sygit · Answer

Something doesn't add up.

You've owned it 6 years, so why does it need so much work?

You put $30k already into it - for what?

Still needs $15k of foundation work - what did you spend the $30k above on?

Another $50k-75k, on top of the $30k + $15k = $95k-120k total?

How much is this place worth?

How close to being a slumlord were you?

Dave Foster · Answer

@Ashton Fry, It would take years to replace the rehab costs. If theres lot of appreciation potential in a long-term play, you are not necessarily in a bad position.   But this could easily turn into a multi-decade hold in order to recoup costs and profit the same as you can now.

If you do decide to sell the property and redeploy your equity into something else, you would have to recapture all the depreciation on the property and pay tax on the profit unless you do a 1031 exchange. A 1031 would allow you to defer all of the tax and depreciation and reinvest it into another investment property if you want a better cash flow and appreciation potential.

It doesn't matter what type of investment property, whether its single family or commercial, as long as it's held for productive use. This is one way investors will scale their portfolios and transition into larger or newer investment opportunities where the capital expense risk is lower.

Dan H. · Answer

Some thought:

- it’s value appears by description to be low $200k if in standard mls condition

- the value to rent is pathetic.   This value to rent is about what I expect for newbie investor purchase in my historical high appreciation market.   Not in an appreciation market that may not have historically kept up with inflation (the value is ~50% of national median).

- the $15k to get rent ready will consume years of actual cash flow.

- $65k to $90k to get market ready means you may walk away near even if you sell.  $108k + $95k + $12k selling costs is $215k.

- The only thing that seems good about this property is the interest rate and that is not enough to overcome the short comings.

- 6 years and very little cash flow and cannot sell for a significant profit.   Why are you consider keeping this property?  do you see potential for significant appreciation or rent growth any time soon

I do not invest in residential property to make just a little more than passive options like the sp500.  There is too much effort and risk involved in residential RE.   If a property cannot project far over 20%/year return I will not buy it solely as an investment.   To easy to get close to that via passive options.  What is mag 7 average annual return over last 5 years?   Granted it will not continue indefinitely but do you think this is the year they stop producing crazy valuation increases?

I suggest you sell.   Either invest in a better RE investment or invest in something else.   Almost anything is likely to produce better long term returns.

Good luck

Janice Carter · Answer

Ashton, if the foundation and rehab costs start climbing, I would seriously consider selling and redeploying the equity into a cleaner deal rather than continuing to pour capital into a 1930 property.

Rod Hanks · Answer

The main issue here isn’t the loan or rent — it’s how much more capital the property will require.

At $1,300–$1,400 rent and a $763 mortgage, the property likely nets around $200–$350/month after taxes, insurance, maintenance, and vacancy. That’s decent for a low loan balance and a 4.375% rate.

But the concern is the repair risk. You’ve already put $30k in, may need another $15k soon, and possibly $50k–$75k more if larger foundation or structural issues show up.

If the remaining work is truly around $15k and the property becomes stable, it could still be a reasonable long-term hold.

If the repairs push toward $50k+, you’re likely better off selling and redeploying the capital elsewhere. Older homes with foundation issues can turn into ongoing money pits.

I’d wait for the foundation quote. That number will likely make the decision clear.