Should I give up and sell?

[Terra Joa Yu]

Hello! This is my first post so if I make a mistake I'm sorry! First I’d like to say I’ve enjoyed reading Jay Hinrich’s posts; they’ve helped me get a firmer grasp on real estate investing and I’m grateful for that, and for all the information I’ve learned here. 

I bought my first investment property, a duplex, in 2020 in Salem, OR using a VA loan. My family lived on one side and rented the other for a year, then moved out and rented out both sides. I thought I had enough knowledge to start investing - for a year I read blogs, biggerpockets.com articles, and most of the books filed under the 333.33 dewey decimal system at the library before I took the leap. Everything I know about real estate (not much I'm sure) told me this duplex was a good investment but since we moved out the rent has covered the mortgage only 3 times. Every month there is something new that needs to be repaired or replaced. Our emergency fund is gone now and this month I've canceled contributions to our IRAs and TSP. I'm frustrated and sad. I was wondering if I could do a 1031 exchange and invest in a real estate syndication? I don't know if I can keep the duplex since we don't live in it and I don't know if I should even try. If it helps, here are the numbers:

6 bed 5 bath duplex built in 1999

Purchase price $466,000

$5051 Closing costs + Inspection (VA loan so no down payment)

$2465 Mortgage @ 2.875% + tax + insurance

$250 ($125 each side) Property management

$1695 x 2 = $3390 Rent for 2020 and 2021

Aug 2022 rent increase $1895 both sides