Hold or sell?

[MoneyQuirk]

Question for the group at large.

Currently own a 2 bed/1.5 bath in Hawaii. 420k, 0 down (VA loan), have had it for a little over 1 year at this point.

Current cash flow looks like:
$2050/mo (mortgage)
$450/mo (HOA fee)

Can currently rent for $2000/mo, or $1800/mo after paying property manager.

This leads to the unfortunate situation of being $-700/mo while rented. I am leaving in about a year, so I have some time to make a decision.

I have plenty of capital to sustain it as needed. However, it seems to ultimately be a gamble on home values continuing to increase in the area (historically have increased about 5% annually)

Thoughts?

[waltworks]

You are going to be negative by a lot more than that, because you'll have some amount of vacancy, maintenance, capex (stuff not covered by the HOA fee inside the unit), etc. Add at least $300/mo to your overhead, I'd say.

So basically, no, there's no way in hell that keeping the place is a good idea.

-W

[theoverlook]

Sell sell sell. That's a terrible investment property. Sounds like an amazing one to live in, but it will not make you money. Even if (if!) you get 5% annual appreciation, you're unlikely to match the return of a less risky, and much more liquid, investment. There's not enough here for me to really run the numbers but there's nothing that will make it a big money maker based on what's provided.