Investor · Los Angeles, CA · Member since 2019 · 132 posts · 91 votes
I have a duplex purchased in April 2022 that has cost me over 18k repairs so far. An inherited tenant has been in eviction since May. I am still having crawlspace issues that keeps getting flooded every time it rains because water gets in through the soil from the water table. Encapsulation will cost me 15-20k easily. One side is rented so I am negative each month about $100. Once eviction is done, I will need to spend about 10-15k to get the unit rented based on current conditions. This has been the worst property in my portfolio and I am wondering if I should just take a loss on this one. If I sell this at a loss, will I owe any short-term tax?
Would love advice from anyone who has been in similar scenario.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
4y
@Jimmy Chao That is the business. I have spent 20k to redo a duplex and 10k to refurbish an apartment. But the property has increased in value to make up for that expense, and the rents have increased as well. This is not get rich quick and stuff will cost money but over the long haul. Well you do the math.
Investor · Kitchener-Waterloo, Ontario · Member since 2008 · 1k+ posts · 1k+ votes
4y
@Jimmy Chao Oof sorry to hear that. This is exactly why I got out of landlording 18 months after I started investing 22 years ago. Haven't had an out-of-pocket repair since. I cannot recommend doing owner financing enough.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
4y
Yeah, that's the business. If they were all base hits, more people would be doing it. Sorry you are going through this. You may need to invest more capital to stabilize this property and bear the fruits of your labor over a longer timeline.
Since you are operating and may sell at a loss (transaction costs add to your basis), I am not sure what short-term gains you are worrying about being taxed upon. (I am not a CPA.)