To Sell or to RENT that is the question
Hello everyone and thank you in advance for any advice you can give on my current situation. Long story short I have a rental property in IL when I run the numbers for it I am getting a 73% COC return buuuuuuuut theres some issues. Total cash flow is 183 currently renting for 2050 which is high for my area but not too high for the property in general it is in a very nice neighborhood but here are the issues.
1. it's on a flood plane and it did have minor flooding while I lived there it didn't get in the house but did damage dry wall in the garage and had to replace insulation in the crawl space. "I have insurance for this" "as a whole when it rains the property retains water leaving the backyard squishy for a few days and the village wont allow for any regrading of the property to fix the issue"
2. Since renting I have had to replace the HVAC system, and a year before then the water heater, it has a new hardwood floor, and carpet but needs some minor work to the back deck and garage door step. I lost a tenant due to medical issues causing them to have to break their lease at no fault and it will cost me 2k more with current management to get a new tenant.
So my question: Should I bite the bullet and get a new tenant or maybe find a new property manager that doesn't have such a high fee and use a HELOC or cash out refinance to fund further real estate purchases? Or should I sell the property and cut my losses and lessen the risk of my property suffering long term issues. As per Redfin it says I am not at a flood risk of more than 3" for 5 years because of my crawlspace but it makes me un easy. When it flooded before it was more like 18IN lol staring at water just below the level of my house was concerning to put it lightly current equity is 100k.
Thank You all soooooooooooo much for your advice