Landers Cabin: Should I keep or sell??

[Lisa Kinman]

Hello. I bought a jackrabbit cabin during the pandemic. It's a cinderblock shell on 5 acres of sand. It had no utilities or septic, so I proceeded to follow all the steps - I've since paid for and completed all the County required tests and have approved building plans. My little pink gem is about 380 square feet. The plans include installing a septic system, water and power, and creating a living space inside with a kitchen, bathroom and living room (studio apartment). 

The water meter alone will cost about $17k. I don't know the charge for an electric meter, prices for actually bringing water and power from the meters to the house, or any of the building costs. I overpaid for the property ($90k) and have spent more than I care to mention on the architect, permitting, PERC test, and miscellaneous fees... My mind tells me to just walk away, sell it for whatever I can get, and take the write off over the next several years. But part of me says to hang onto it, finish the job, and offer it as a long-term rental. 

It's a lot to figure out money-wise and I'm not sure I'm qualified to do the math... what would you do? 

[Caleb Brown]

What would you lose if you sold? How much more will it take to finish? What is the projected income once done? Personally if it has been a head ache and you don't have the funds or bandwidth to finish then sell. Obviously see where you'd be at from the loss perspective, if it's a heavy hit and the income out weighs it then I would finish. You can hold for a couple years and 1031 into something else. Bad deals happen and it stinks but there's time to cut the losses to move on.