Would you choice A or choice B?

[David J.]

I am thinking over 2 choices. Would like input, insight or opinions. 

I have a bay area SFH value ~$410K, bought 1 year ago for $385K with 20% down and put about $30K repairs into it. Has good terms, 30year loan with 4.5% interest rate.

Sadly it only cash flows $100 per month.  :( 

Concern is market correction price drops are near. If I want out I should do it soon.

Would you ?

• A: Hang on to it, Keep fixed loan and allow tenant to pay down loan while using  low or negative cash flow as a tax write off to prop up other properties on tax day.  Ultimately, should be a winning deal over time as rents increase, loan is paid down and perhaps inflation eats away and value of dollars still owed. 
• B: Try to sell now and cut loses. Hoping to leverage funds to buy smaller (cheaper) SFH's and use the BRRRR strategy to buy cash and cash out with ARM loans. (already have lender on board for this idea). Cash will be needed to kick in the BRRRR strategy.

Thank you in advance for any and all replies.

[Joe Villeneuve]

B...No questions.  Option B keeps you in the game.  It's like Poker, the main rule to success in the game, is to stay in the game.

 No matter how many hands you lose, you haven't lost any money unless you run out of money, hence...stay in the game.  The money you put in the pot for every hand you lost, is just in a different pile on the table.  You haven't lost it yet.

REI is much like Poker in that way. Staying with a bad hand, throwing more chips in hoping the next cards you get will turn things around, is not a good strategy...and will get you closer to being out of the game. Throwing good money at at negative cash flow is the same thing. Get out, move forward with what you get out with, recover what was negative with gains on the next property. The faster you get out, the more you have to move forward with...and the faster you will recover the negative cash flow.