Is this an asset or liability

2 Replies

I have a rental property that has a negative $150 cash flow and that’s not including repairs that come up occasionally. I bought it in 2015 and the value hasn’t appreciated much since. This was my first investment property and I’m now thinking that maybe it wasn’t a smart investment afterall. It’s a condo which also has foundation issues which the hoa is supposed to take care of but only god knows when that will happen. Should I hold on to it while I have a tenant in there and wait for the hoa to someday fix the foundation problems and then sell or should I get rid of it now knowing that I won’t be able to sell it for a fair price right now given the foundation problems? Is this considered an asset or a liability based on the rich dad poor dad definition? Obviously I’m paying money out of pocket but the rent IS paying down part of the mortgage.

Negative cash flow + no appreciation = liability. Even if you're technically breaking even from mortgage paydown or depreciation, it doesn't sound like a good investment.