Emotional connection to a loser deal?
Hello BP Team,
I'm looking for a little advice from the veterans out there.
I've built a team (money people, contractors, Realtor, etc) and working deals as I find to either buy & flip single family (SF) as well buy & hold multifamily (MF). Flips to help pay for the holds.
I have a SF rental due to the crash in 2007... Bought 2004 as primary residence, got married, move to a city 100 miles away and could not sell the house and did not chose to walk away or try & short sale. The home has equity again but only enough to keep me from paying out of pocket at closing.
The rent does not pay the entire monthly cost, financial details below. I've had it in my head to use the home as a means to fund my 2 boys college education in 12+ years.
Home value $180k
Mortgage $162k
Monthly payment $1610. (Pay mortgage insurance).
Rental income $1295
Annual HOA Fee of $350
19 years left on mortgage
Built in 1986 and have done some repairs to AC and roof but neither replaced.
Home is 100 miles away from where I live (and where I focus my current deals) but I'm in the town often due to work (I still have a regular job in IT Sales).
The home seems to rent well and I've found decent renters, current family is at the end of year 2.
My question is this... Should I stay or should I go. I have some emotional equity and a lot of financial investment in the home that may be clouding my business judgement.
I do gain some tax benefits as I write off the mortgage and repairs but the home still costs me each year. Should I cut my losses now (10 years later) or hold on and reap the (potential) financial reward of sticking it out?
Any insight is appreciated!
Todd Rigden
Punta Gorda, FL