How do you recover from a bad initial investment?

[Effram Barrett]

What's up BP family so I have a dilemma that I need assistance on. I've mentioned the condo I purchased before but I'll give it short. I purchased a 1bd 1bath after moving from my parents home with the intention of renting it out. I figured it was in a decent part of town and my mortgage was not bad at all so I thought there would be some nice passive income. But like I'm sure some rookies do, I never ran the numbers or did a deal analysis. So fast fwd 18 months later I'm looking to rent it out and my numbers are not good at all. The cap rate is pretty bad and my ROI is sad. So my question is how can I recover from a rocky start? This was definitely an eye opener I'll admit and I know I could make a much wiser decision today.

[Joe Villeneuve]

Sell it and move on.  You can recover your losses in the next deal.  Holding onto a bad deal, throwing more money at it, wishing and hoping your luck will change it, isn't a plan....for success at least.

REI is a lot like Poker in the sense you don't lose money when you lose hands...you lose it when you run out of money and are out of the game. See, the money from the hands you lose, are just in different piles that can be recovered in different future hands (REI - different future deals)...as long as you are still in the game.

Nothing takes you out of either game faster than staying with a bad "deal".