Hope everyone is having a wonderful holiday season!

Unfortunately, the end of 2024 has brought a string of financial challenges for my family, and I’m feeling the pressure.

Two weeks ago, I was laid off from my job. Thankfully, my wife is still working, and we have a few months’ worth of emergency funds to cover our expenses. Initially, we thought this would be enough to get us through until I found a new job.

However, things took a turn today. I own one rental property with a mortgage of $3,400 and rental income of $3,300. After a long and complicated history with the current tenant, I’m now starting the eviction process. Since the property is in Los Angeles County, I expect the eviction could take 4-6 months, followed by another month or two to secure new tenants. That means I’ll need to cover the mortgage for the next 6+ months entirely out of pocket. With this additional expense, that would mean depleting the savings we’ve worked so hard to build over the past few years.

To add to the situation, my wife and I are expecting our first baby in just two weeks!

I’m turning to this forum for advice on what to do with the rental property. Here’s what I’m considering:

• I plan to call the mortgage company tomorrow to explore any assistance options they might offer.
• Should I look into selling the property? Managing it has been exhausting, especially with the tenant issues and LA’s landlord policies.

Here are some details about the property:

• Purchased for $650k, with about $90k spent on renovations.
• Current Redfin estimate: $1.1M.
• Mortgage interest rate: 3%.

Would selling it “as-is” during the eviction process make sense financially? Or should I stick it out and keep the property?

For additional context, here’s a snapshot of our financial situation:

• We’re paying the mortgage on our primary residence.
• We have one car with ongoing payments.
• I anticipate it could take up to three months to find a new job.
• I’ve already applied for unemployment benefits (in PA) and am waiting for approval.

I’d greatly appreciate any advice or insights. Wishing everyone a happy and peaceful holiday season!