Need Advice on Appreciating Unit with Negative Cash Flow
Greetings BPers,
I have another post outlining my decision to sell my 2/2 condo. A majority of BPers said sell and get another property (in short it was not cash flowing as much as I expected and a few water leaks last few months led to $1500 in damage.)
We put unit on market last week and have an offer for $93k. I purchased for $83k in July of '17. My dilemma is that I will be losing about $2600-$3000 overall after paying closing cost. I put $20060 in closing and down payment when I purchased and will net apprx. $17,393 after selling and paying off note. Standing offer of $93k is the high end of comps, buyer's first offer was $86,500.
I plan to do a 1031 exchange,so losing more money than I invested is really a set back.
I ran my numbers again renting it out -I didn't run numbers right when I purchased it...I didn't know about BP yet;)- and here is what things look like if I keep it:
- negative $60/mth cashflow (factoring in vacancy, repairs and cap expenses)
However, since July of '17 this property has appreciated $10k (apprx. $5k/yr.) Sadly, as of now all this current appreciation will be eaten by closing cost plus some.
So,Im looking for any thoughts,advice,input,creative ideas from some more seasoned buy and hold investors. Should I keep the negative cashflow and hope unit keeps appreciating (it is a B class condo in San Antonio) or sell it, take the loss and get back in the game elsewhere?
I do see the plus sides of the property tax deductions and interest deductions,but I was wanting this to cash flow much better. Learning as I grow;)
I have thought about asking my realtor to lower her commission since I would buy my next prop through her.
Thanks in advance!
Patrick