Should I sell my rental?
Hi everyone,
I’m looking for guidance on whether or not to keep my property. Here’s the story.... I bought my 3 bed 1.5 bath in June 2019 thinking it would be a “turn key” rental for the neighborhood.
I purchased the house for $94,000 with a conventional loan. Cash to close $26,914. I thought that I was going to get tenants in right away but, ended up having to do some repairs and didn’t get tenants in for 2 months. Holding cost+ repairs= $13,696. Then had repairs in 2020 for a total of $16,552. Tenant turnover in 2020 with holding cost of $2064.93 Monthly cash flow right now is $498 after paying PM and mortgage. I believe current value of the house is around $110,000. (Zestimate)
The house is in a neighborhood that I don’t assume will appreciate a ton over the next couple years. Also, the house is 92 years old so I assume I will continue to have repairs.
Do I sell it now, take the loss, take my cash and buy something else? Or do I wait 8-9ish years to make back my losses that I have spent in repairs and cross my fingers I don’t have any big repairs and my tenants stay in the house.
I’m Interested in hearing what other investors think. I also have a google sheet that has more details if anyone wants to dive into this.