Can you guys and gals offer some advice?
I have a condo (my only investment property) that is located in far North Dallas. We started a much needed renovation and our contractor flooded the entire condo due to his negligence. The contractor did not have insurance and my home owners insurance refused to cover the damages. The damages came out to $20-$25k. We have had a second water damage incident this week from my upstairs neighbor that could add another $10-$15k in damages. We are not sure if their insurance will cover the damages due to the crazy bylaws we have at these condos and my home owners insurance is again refusing to pay for anything.
Condo Monthly Costs
Mortgage: $609.00
HOA Fees: $284.08
Property Tax: $130.30
Home Owners Insurance: $50.00
Total: $1,073.38
Potential Rent of $1,200 to $1,300 per month after repairs
My question is what is the smart thing to do….
(1) Fix up the condo and rent it again
(2) Sell it as is with the damage
(3) Fix it up and sell it
(4) Other...
The comps on the condo are $162k and I owe $72k on the mortgage with an 8.1% interest rate. If I keep it, I’ll look into refinance it.
Thanks in advance