Should I sell my losing SFR rental or continue to hold on
Hello BP folks,
I have an interesting situation for one of my rental property which I purchased in Feb 2016 for $109K.
The property has now appraised for $130K and I expect it to appraise at the same rate. I put down $30K on this deal and rest is financed.
I have been losing money on this property since my gain from rental income is too low to offset maintenance/repair/PITI/HOA/property management costs. Last year, was the only year where I made $1200 in profit.
I had a long term renter since I purchased it and apparently they left the property 2 weeks ago due to financial crunch. Their contract technically renews in April.
The property management company did a moveout inspection and found the total cost to get in the market (mostly paint and patch) will be $6100 (I feel this is high).
My question is should I invest $6100 to get another renter in place and wait till I get it appraise upto $200K and sell? If I spread that $6100 I will be making no money atall on this rental for next 3-4 years.
OR should I sell it for $132K and do a 1031 exchange into another deal?
OR should I sell it pay taxes and invest in Fundrise or Holdfolio or Cardone Capital?
My ultimate goal is passive income.
Thanks
Sam