Keep or Sell OOS Property?

[Manco Snead]

Greetings all,

Looking for some feedback regarding keeping or selling. Bought an OOS 1 level duplex (built in 1979) 6 months ago in Iowa; decent quiet clean neighborhood but not A class. Thus far property management has been bad (just started with new PM). One unit has not paid rent in months and is in the eviction process, though supposedly she is finally going to move out by her own choice. The other unit has been vacant for 2 months and the new PM has taken very little initiative to get things moving for cleaning/repairs even though it cant be rented before these things are done. Unclear if he's dragging his feet because no rental income. Each unit will need $8-10K (repairs/paint/cleaning). I've now been coordinating everything as it seems the only way to get things done. Tired of paying the mortgage and not sure if I should pull the plug.

Purchase price: $200,000

Cash down : $50,000

Mortgage: $1000

Rent after repairs: probably $900 each unit

PM: 7%

Total cashflow after mortgage/lawncare/PM = $650/month before vacancy/repair reserves