Underwater rental property. Keep it or short sell it?
I would love your advice. Should I keep this rental property or should I short sell it?
I have a condo in Algonquin Illinois (3 bed, 2 bath, 1890 sq/ft) that I had bought for $265k in 2006.
I have about 40k in equity in the property
The current comps for this property are around 185k - 195k.
Ten years later the property is still 70k - 80k underwater.
This property used to be be my main residence, but I have moved and I am now renting it.
Total expenses = $1835.84
Rent = $1700.00
I'm losing $135.84/month
With this property still underwater 70k - 80k and I am paying an extra $135.84/month. Would you keep this place or short sell it? Its been ten years since the crash and the location is still creeping back. Im not sure how to run numbers to see when, and IF, I will ever break even on this property.
Thanks for your advice!!