Looking for advise on Neg cash flow property
Hey everyone, I'm a rookie realestate investor looking for some advice on a rentel property. There's a lot for me to cover so I'll start with the question. Should I keep a rental property with a negative cash flow but gaining equity or sell and reinvest on more properties? Here are the numbers.
- House was purchased brand new in 2016 for $625k
- Tolal investment- $0
- Monthy rent recieved- $3000
- Morgage w/ HOA - $ 3200
- Property mangment fee - $300
- Current value- $900k +
I know that loosing $500 isn't a smart move but I have other properties that bring in enough money to cover the loss. Also, the value has increased so much that I just feel like it's a monthly investment at this point. Another thing to consider is the gains tax [U.S. federal and State]. I would just hate to give up that money. Currently my plan is to make it my primary residence so I can avoid the taxes when I sell. I appreciate any advice you can provide.