Sell or keep

[Khurram Mirza]

Looking for an opinion on wether to keep or sell a house. We own a 1911 single family rental in a quaint country village 30 minutes from the city. After 2 years of renting it out we tried selling it to make our money back at no profit but not selling at that price over the summer ($500k), we bought it at $380k and put in $100k of reno's. We recently discovered mold showing up in the basement walls. After removing the mold risk and opening the walls we found moisture coming through the foundation showing improper foundation work done over time, including wood foundation being used in the rear. Do not want to put anymore capital such as a $140k cost of foundation further putting us in the red so considering selling this money pit as is or holding on for creative ways to make this house profitable. A basement unit cost would be an additional $150k , so potentially need $300k to make it two doors. Feel like we shouldn't be losing in property nowadays. 

[Joseph Beilke]

In the US some markets are still pulling top dollar and other markets you are seeing price reductions.  Base on the information you provided I feel in Canada you are most likely experiencing the same.  This property is going to be a money pit for a while, but long game will most likely show a profit or at least not a loss.  If you have the means to hold the property, make the repairs to the foundation and wait for up swing in the market, I would try to hold it.  

Option 2, sell it at a loss, relieve yourself from the headache and learn from the experience.

I would not recommend doubling down and make foundation repair and split the property into 1 units.  

Best of luck

[Cody Neustaedter]

Is there a band-aid fix that you can do in the meantime that might stop the mold issues even if it doesn't address the foundation issues right away.

If you are going to consider selling it at a loss the question doesn't become how much money did you lose on this deal but rather how much money can you make from the money you would be able to get out of the deal. If you could still pull out $50k of equity for example, do you have a greater chance of making more money of that $50k right now, or would it be better to keep the property and make the appropriate fixes over time.

Tough situation to be in.

[Armstrong Maignan]

When you put it on the market, were you getting under contract then the buyer would back out after inspections?