Real Estate Investment Question – Time to sell or hold?
I purchased an investment property for $370k and its worth $390k minimum. I’m negative $740 a month on this rental and I currently have a tenant. The first mortgage is an interest only loan with a 7.50% rate and a lovely 6 month pre-pay penalty. My rate is high because i bought this as an investment property. Should i sell this investment property and accept my losses and move on? It would literally take 5 years for the rental income to cover the mortgage payment. This was my worst investment of all time but I did so well selling my other rentals I wanted to buy something else asap. So at this point should i sell my investment property or should i just eat $740 a month? I enjoy tax deductions but this isnt the right way to get one.
Right now, isn’t a good time to be selling. Housing is on the downside and even though the property may have a high value, you won’t realize much profit, if any.
IMO, hang on to it, a while longer and take the tax deductions.
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