- Joined
- Aug 29, 2007
- Messages
- 2,042
Based on projected expenses the reality is you do not actually have positive cash flow at all right now. You only think you do because the expenses have not yet happened. They will and that is the reason you should sell.
The market in your area is irrelevant in regards to selling or holding the only thing that really matters is you can not afford the expenses based on the income.
You are over leveraged and when things go bad you may not be in a position to get out from under quick enough. The buy and hold on for dear life tactic may work in theory but in reality you can get badly burned. It is easy for experienced investors to advise but keep in mind they may have the finances to weather the storms. You may not.
Can you survive an eviction and extended vacancy (6 months) or $10,000-$20,00 for major repairs. If the answer is yes then do as you please, if the answer is no and you are considering holding then I assume you are thinking it will never happen.
The market in your area is irrelevant in regards to selling or holding the only thing that really matters is you can not afford the expenses based on the income.
You are over leveraged and when things go bad you may not be in a position to get out from under quick enough. The buy and hold on for dear life tactic may work in theory but in reality you can get badly burned. It is easy for experienced investors to advise but keep in mind they may have the finances to weather the storms. You may not.
Can you survive an eviction and extended vacancy (6 months) or $10,000-$20,00 for major repairs. If the answer is yes then do as you please, if the answer is no and you are considering holding then I assume you are thinking it will never happen.