Personal Home Turned into Rental But Need to Sell

Houston, Texas
Real Estate Deal Analysis & Advice
4moFollow

Personal Home Turned into Rental But Need to Sell

Eric Beckham
Investor · Longview, TX · Member since 2020 · 3 posts · 6 votes

I purchased a condo in 2024 at $178,000 for my personal residence. I used seller financing with $10,000 down, $168,000 loan at 4% for 15 years. As I had planned to stay there indefinitely, I liked the low entry cost, low rate, and fast principle pay down. Monthly: PI $1243, HOA $386, taxes $290, insurance $100 = $2019 monthly cost, not including any maintenance, etc.

In the fall of 2025 I decided I needed to be closer to my aging parents, so I rented the condo out at the then market rent of $1400.  I decided to rent it, because the market was down in Houston and I was advised by three different Realtors that I would be lucky to get $160,000 for the property.  The monthly loss would be offset by principle paydown, and we'd revisit the sale in a few months or a year.

Now, it's mid-2026 and I really want to get out of this property.  I'm technically losing over $600 a month, even if I am paying down over $700 a month (and growing) in principle.  I've had a couple of Realtors run CMAs for me, and it looks like I might could get about $175,000 for the place.  With a lease in place until 01/31/27, I suspect I would need to find an investor buyer as opposed to owner-occupant, and based on the numbers above, it would need to be a cash purchase to cash-flow.  My current loan payoff is about $150k.  If I could get out and walk away with $20-25,000 after expenses, I'd be able to move forward with investing in my new town.  Until then, I am cash poor and having trouble getting going investing. 

My question is very broad:  What should I do?  I am open to any and all constructive advice.  Thank you! 

2Reply
264 views

Most Popular Reply

Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
4mo

Start by asking your tenant if they are interested in buying it, that would save you realtors fees.  If not, then let them know you are putting it on the market.

From there, you might find an investor wanting to buy a tenanted condo, but my guess is they'd low ball you.  Or you can offer to give the tenant $X to break their lease early and give them 30- 60 days to find a new place.  You don't give them the money until they are out and the place is in good condition.


Even if you had 'lost' money when you sold for less than you paid, how much would it have cost you to rent a place for that amount of time?  Ie you may not have made money on the house, but you would have had to pay rent and may still come out ahead.

3Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    4mo

    Based on an experience in the stock market I fully subscribe to avoiding the sunk cost fallacy. As soon as you can find a buyer I would sell. This isn't an investment property it was your home. Unfortunately we win some and lose some. I hope you are able to walk away without writing a check.

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4mo
    If they think you could get $175k just remember you will have closing costs and realtors fees etc which are gonna be $10-$15k. So if you could walk away from this thing even with no money out of pocket that is considered winning. Another option is to see if the seller would allow someone to take over the loan and let you walk away. These are some options to consider
    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4mo

    Start by asking your tenant if they are interested in buying it, that would save you realtors fees.  If not, then let them know you are putting it on the market.

    From there, you might find an investor wanting to buy a tenanted condo, but my guess is they'd low ball you.  Or you can offer to give the tenant $X to break their lease early and give them 30- 60 days to find a new place.  You don't give them the money until they are out and the place is in good condition.


    Even if you had 'lost' money when you sold for less than you paid, how much would it have cost you to rent a place for that amount of time?  Ie you may not have made money on the house, but you would have had to pay rent and may still come out ahead.

    3Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    4mo
    Quote from @Eric Beckham:

    I purchased a condo in 2024 at $178,000 for my personal residence. I used seller financing with $10,000 down, $168,000 loan at 4% for 15 years. As I had planned to stay there indefinitely, I liked the low entry cost, low rate, and fast principle pay down. Monthly: PI $1243, HOA $386, taxes $290, insurance $100 = $2019 monthly cost, not including any maintenance, etc.

    In the fall of 2025 I decided I needed to be closer to my aging parents, so I rented the condo out at the then market rent of $1400.  I decided to rent it, because the market was down in Houston and I was advised by three different Realtors that I would be lucky to get $160,000 for the property.  The monthly loss would be offset by principle paydown, and we'd revisit the sale in a few months or a year.

    Now, it's mid-2026 and I really want to get out of this property.  I'm technically losing over $600 a month, even if I am paying down over $700 a month (and growing) in principle.  I've had a couple of Realtors run CMAs for me, and it looks like I might could get about $175,000 for the place.  With a lease in place until 01/31/27, I suspect I would need to find an investor buyer as opposed to owner-occupant, and based on the numbers above, it would need to be a cash purchase to cash-flow.  My current loan payoff is about $150k.  If I could get out and walk away with $20-25,000 after expenses, I'd be able to move forward with investing in my new town.  Until then, I am cash poor and having trouble getting going investing. 

    My question is very broad:  What should I do?  I am open to any and all constructive advice.  Thank you! 


    Why would an investor buy your problem?

    There's no cashflow.

    Maybe a newbie investor that doesn't know any better.

    Appears you only have two options to sell:

    1) Sell with tenant in place, to another investor, at a large discount.

    2) Negotiate with tenant to buy out their lease, so they move and you can sell to an owner-occupant buyer.

    3) Try to sell to the tenant.

    [email protected]248-209-6824
    Logical Property Management4.9462 Reviews
    WebsiteView Page
    1Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    4mo

    @Theresa Harris beat me to 

    1)ask the tenant, give them 3% off “list” save another 3% in realtor fees. Maybe they can buy for near their rent? 

    2) Ask the seller if they want it back to avoid having to foreclose on you and then rent to the tenant until 2027 because they have a valid lease. They should be excited about this. They get a couple hundred less per month but keep your downpayment and loan payoff. 

    3) keep the course. If you’re truly paying off more of the loan than you’re coming out of pocket you’re producing tax free income, if you can afford it.  This is assuming your market as rising property values and rent so the gaps being closed. If it doesn’t, sell tomorrow and take the loss. 

    1Reply
  • Amir Twig
    Investor · Miami, FL · Member since 2023 · 91 posts · 28 votes
    4mo

    Eric, everyone's right that you should get out, but before you dump it at $175k and eat the fees, look at the asset you're sitting on: a 4%, seller-financed note. In a 6.5-7% market that cheap money is worth real money to a buyer, and it's your best shot at selling at or above the CMA instead of below it.

    Two ways that plays:

    - If your note with the original seller has no due-on-sale clause (seller-financed notes often don't, but read it), a buyer may be able to take it over directly, or you sell on a wrap: you keep paying your 4% note and your buyer pays you on a new note at a higher rate and price. You're selling the financing, not just the condo.

    - Marketed as "take over a 4% loan," a tenant-occupied condo goes from a hard sell to an attractive one for a buy-and-hold investor. The lease until 1/31/27 that's scaring off retail buyers is actually a feature for that crowd.

    On the hold-vs-sell math itself: at $1,400 rent against $2,019 of cost it never cash flows. The $700/mo principal is real wealth, but you're feeding it $600 cash every month to get it, and the HOA alone ($386) caps how good this can ever get. So selling is the right instinct, it's just a question of selling it smart.

    Have you actually read the seller-financing agreement for a due-on-sale / transfer clause? That one detail decides which exit is even open to you.

    3Reply
  • Kristine Kehoe
    Real Estate Broker · Fair Lawn, NJ · Member since 2026 · 7 posts · 2 votes
    4mo

    I’m not in your market, so I would lean heavily on a local agent who knows how tenant-occupied condos are moving there right now.

    That said, I would separate this into two questions. First, what is the cleanest way to sell? Second, what is the real cost of waiting?

    With the lease in place, your buyer pool is probably narrower. An owner-occupant may not want to wait until January, and an investor is going to measure the numbers pretty closely because the monthly cash flow is negative. That does not mean it cannot sell, but it may affect price and terms.

    I would ask your tenant first if they have any interest in buying. After that, I would look at whether a lease buyout makes sense, but only if the cost of doing that is worth the wider buyer pool. I would also review the seller-financing agreement with the right professional, because that 4% financing may affect what options are realistically available.

    The part I would be careful about is holding just because the principal paydown feels good. The equity build is real, but so is the monthly cash drain. If this property is keeping you from investing where you actually want to be, then walking away clean or with a modest amount may still be a good outcome.

    1Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 663 votes
    4mo

    Hello @Eric Beckham,

    It surely can be a tough situation and one that needs to be looked at from all angles. 

    As a Realtor, property manager and investor for over 40 years, I have been through alot, from up and down markets and more. Now I invest striclty passively through the coinvesting club, I have cofounder. 

    I'd ask yourself one simple question: If you didn't already own this condo, would you buy it today at this price? If the answer is no, it may be time to sell and move on. Yes, you're paying down the loan each month, but if the property is keeping you from investing in better opportunities, that's something to consider too.

    One other thing—before you sell, talk with your CPA. Since it's now a rental, there may be tax consequences or deductions that could affect the timing of your decision. It's worth understanding those before making a move.

    Then compare what it would cost to keep it for another year versus what you'd walk away with if you sold now. Perhaps even create a spreadsheet. This way the numbers, not your emotions make the decision. I wish you the best of luck and hope it all works out in your favor!

    Spark Rental Co-Investing Club584 Reviews
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free