Hello,
I am looking for advice on whether to sell or hold on to my duplex. I paid $160,000 with only 3% down three years ago (yes, stupid). I have lived in the top unit and rented the bottom unit until now. There wasn't much of a kitchen so I removed what was left of it with intention of putting in a new one. Now that I am about to spend roughly $8,000 on the kitchen and other renovations to get the top unit rentable, I am debating whether or not to sell it. The problem is, if I sell it I will most likely have to bring money (up to $8,000) to the table since it has lost value since I bought it. I realize this hasn't been a good deal and paying $8,000 to get out of it would suck, but I would have a clean slate and avoid wasting future money on the place. Is this place worth hanging on to for future benefit, or is it just a drain on my money?
My question is, should I pay $8,000 to get it rentable, or pay $8,000 to get out of the deal? specifics below....
Rent revenue............................$1,500/month ($700 bottom unit, $800 projected rent top unit)
Mortgage pmt/pmi/taxes/ins.....$1,165
Sewer/water expense..............$ 117
Net cash flow/month.................$ 218 (assuming zero vacancies and zero maintenance, so basically it is breakeven)
Any advice is really appreciated.