Should I Sell or Hold a Bad Deal?

[Heather Brown]

Looking for input/opinions/constructive feedback.

Purchased a property 9/30 with intention of marketing as STR/MTR.

DD with no red flags and seemed like good area for this strategy d/t lots of healthcare and huge military presence.

1. The numbers:

Closing costs: 82K

Furnishing: 10K

Purchase: 292,500

HELOC on primary used for funds to close.

2. The problems:

a. Well, despite my research, it seems that STR is not permitted in the city, period.

There are a lot of STR's currently there, but I'm afraid there will be a crackdown because a state bill was passed on Oct 1 stating that abnb will send all occupancy taxes directly to the city.

So now the city will be receiving tax revenue on all of these properties that it didn't even know about. 

b. The numbers don't work for a LTR (if it was just the property I could make it work, but can't cover furnishings, heloc payment, etc. so would be a loss; not to mention the holding costs for the last 3 months)

c. So my only option it appears is MTR, which seemed fine at first. That's really what I was hoping for anyway, and to fill in holes with STR. But I have had the property listed since beginning of November and it is still not rented.

3. The solution:

Should I just unload the property, take the hit, and move on with the lesson learned?

Or should I hang on and keep trying to rent it because it is a terrible idea to sell a property after 3 months?

Thanks for any help.