Personal Home Turned into Rental But Need to Sell
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!
Most Popular Reply
#3 Managing Your Property Contributor
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.