Updated over 10 years ago on . Most recent reply
Need Advice Regarding an Unwanted Property
I currently own a 1-bedroom condominium in a high-rise building which was unable to be sold, so I have reluctantly become a real estate investor. The condo that I own is located in Cleveland, Ohio, and I currently live in California. I resided in the condo for four years while I completed my residency in Cleveland. When I first purchased the property in 2006, the cost was about $130K. Since that time, the value has dropped to around $70K. I was unable to sell the property without taking a loss of about $20K as I still have over $90K left on my mortgage. Since 2011 I have had tenants renting the property. When I moved to California three years ago, I hired a property management company for the condo.
I am still about $20K underwater on my mortgage, but I would like to get rid of this property. I am a physician living in California, and I do not have any interest in owning a rental property in the Midwest. Also there have been some issues with water infiltration in the building which have affected my condo as well as several others. At this point the monthly rental income I receive just barely covers the mortgage and association fees. Do I have any other options besides taking a loss by selling the condo now or waiting for the value to increase? It seems like the condo prices in my building have not been able to rebound much since the housing crash. I view my condo as more of a liability than an investment. Do you have any advice for me in this situation?