When should I cut loss and sell rental property?

[Kody Bernier]

Bought a property in Summer 2020 and it’s been nothing but repair after repair.

I bought the home for $194k. It was in “good condition” meaning it didn’t need a renovation. Floors, walls, roof were all in good condition.

After about 6 months in I found out It had a foundation crack because water was coming in through the basement (wasn’t mentioned in inspection report). That cost me $15k.

Since then about once every month I get some kind of water pipe burst or leak because the copper pipes are wearing out. This usually runs me $3-500 to call the plumber out and fix it. Not to mention whatever water damage is done.

My house has appreciated with the market so it’s now worth roughly $250k (according to Zillow).

I don’t know what to do. Keep it and keep getting nickeled and dimmed out of rental money? Or sell it, make some money, and move on.

What should I do?

[Chris London]

@Kody Bernier I'd get a comprehensive quote (or two) from a plumber to see what it would cost to fix all of the pipes. 

Between the original closing costs, foundation repair, pipe repairs and water damage as well as the taxes and commission to sell it you still could come out even (or ahead), however, if you've fixed most of the issues at this point you might consider waiting to gain more appreciation on the property before selling.

Reading your second to the last sentence it's written in a way where you may have already made up your mind.

Good luck,

-Chris