In 2009 we bought a SFH. We could not sell the 2 bedroom townhome in Cary, IL due to the market crash. I have been renting it since. Two tenants were problems, but this was my fault due to poor screening ( I am too nice :)
I bought the townhome in 2004 for $200K. $60k (4.5 years) is left on the mortgage. The rent covers the mortgage, but I still pay $5.5K for taxes & $2K for HOA. The townhome would sell for around $145-$135K. Do you recommend selling and taking the $60K - $70K loss?
It took 4 months to find the current tenant - just a steady stream of lookers and not very good quality prospective renters. The current tenant will leave in June - she broke the lease to a non-allowed pet.
Maybe it is time come to terms with this and sell at a loss.
David, That's a great question to ask. You're already taking a loss on the property with your $7.5k taxes/HOA plus vacancy and maintenace & repairs. If you've been renting at a loss for 6 years already you've almost cost yourself that $60k anyway. You're in a position to sell and walk away with enough cash to invest into something that makes you money. How would you feel owning something else that cash flowed? How soon do you wan to have that feeling?
Other things to take into consideration is how fast can your property sell and at what cost to you? There's no wrong answer to your question, but if something isn't moving you towards your long term goals and that money can be put to better use I'd sell if it was me.
You keep focusing on the "loss" but in my eye I see you walking away from a headache with at least $50,000 in your pocket. I have a house that I'd like out of and I'd actually pay out of pocket to get rid of so if I were in your shoes I'd sell and feel good about it.
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