My wife and I bought a townhome we planned to rent out in a few years when we bought a sfr with a yard and white picket fence. However after running the numbers now that I am actually looking at it I'll be lucky to make -350 a month after pmi and hoa. So now comes the question of how long should we keep this place and how many upgrades should we do. I know this is really vague but just curious. After a little over a year and a half we have about $20k in equity. I live in southern California if that makes a difference.
Run the numbers as if it were a new investment opportunity. Would you buy it again? Or is the return not worth it?
If you would buy it again, keep it. If it's not worth it, sell it and buy something that is.
@Nathan G. That's a great way of looking at it thank you.