C-Level Property with Trouble Tenants but Great Returns, Next Steps?

[Vlad B.]

This is a great community that is very helpful! To that point, do you stay with a C-Level property where the neighborhood has gone downhill per my property manager, or sell it and take the upside to buy more inventory?

Cons:
- Bad tenants who pay late, destroy the property
- PM says to sell 
- Dealing with eviction now
- Not much inventory in the area

Pros
- Payment, Insurance, and Interest has dropped by over $100 per month
- Great returns if rented to paying tenant
- has appreciated 60%-90%

[Joe Villeneuve]

Everything in your Cons tells you to sell.  Funny, everything in your Pros does too.

Pros
- That's over $1200/year in savings (if you get your rent).  Keep this in mind when you read the following...
- Whenever you use a word like "if" in your argument to keep a property, you are actually making a statement to sell it.
- 60-90% appreciation is your property losing money by the bucket(s). Appreciation is a great thing. It's one of the goals of REI. However, the role of equity is to buy the property. In other words, the cost of your property is what you have in equity, and the value of the property is the actual property value.

Do the math.  Compare these to options (the ones you have presented here), with these money results for both:

1 - If you keep the property, and gain $1200/year from months savings
- Equity
- Property Value
- Cash Flow/year

2 - If you sold the property, and gain and took the now liquid equity and use it as a DP (20%) on another property,...or properties
- Total Equity
- Total Property Value
- Total Cash Flow/year

...and your final answer is?