Any advice? Should I sell?
I have 5 properties. One looses $458 per month, which might go down to $383 per month if rent can increase to what property manager says is possible now. That monthly loss is preventing me from paying off one of the other properties faster.
I purchased the condo in 2007 in Jersey City for $360,000 and put $30,000 down.
Refinanced in 2013-ish at interest rate of 4.25% as investment property after I had moved away.
I currently owe $250,100.
I can sell now for $270,000--the first opportunity I've had to sell without needing to pay money at closing.
I can afford to keep the condo and continue to take a $458 to $383 monthly loss, but should I?
Does the property really ever have a chance in my lifetime of going back up in value to $360,000 or higher?
Property is located in Jersey City, NJ and currently valued at about $270,000.
While I in no way want to speculate on what market may or may not appreciate, I can speak to the burden of unloading your worst property. It is such a load of bricks off your back I would do it for that alone. My worst performing property actually made a couple hundred dollars a month but simply was not worth the headache. I cannot tell you the pleasure it gave me to never have to visit it again.
@Sundri Khalsa . If I don't see any future in it, I would just cut my losses and move on. But that's just me and based on the information I read. Not everything that goes down will go back up.
@Sundri Khalsa Never assume natural appreciation will happen. If you can make some money selling (well not really making money but getting some money at closing), with what you have said, I would sell. Hope that helps!
Unless you have a lot of other income and using the loss on this property can help with taxes??
Well, you have 2 topics about it, so here's what I answered you on the other one:
Why the property devaluation was 25% in just one year? It doesn't make any sense. Either you bought it well above market value, or something catastrophic happened to it (or to the neighborhood).
Really curious to understand a little bit better. Jersey City market is usually hot!
so you can chose to lose money now, or chose to lose money for the indefinite long term future.
Ever heard the phrase "rip the bandaid off"?
JC condo prices are continuing to appreciate relatively quickly. If your condo value is still so low relative to the last peak I think I can guess which one it is, and it might have something to do with litigation and perhaps the condo not being warrantable. I'm a realtor and have sold condos recently in JC and they sold quickly and at significant gains compared to their 2007 prices. FYI median condo prices in Journal Square were up around 7% YOY in Q4. I suspect prices will continue to rise in your area but not another 30-35%. If someone offered you an investment deal where you lost $300-400 per month would you go for it? No. So why stick with this one? You're now putting good money after bad. There's a lot of discussion on these forums about minimum $100 per door or 2% rule, etc, but you're looking at a pretty sizable loss each month. Yes, sell.
Thank you all so much for the replies!! So helpful and really makes me feel good about my decision to sell. Thank you!
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