To keep or to sell

[Sharon Supera]

Hello everyone,

I’m seeking your advice on whether I should continue holding or sell a property I purchased last May 2023 in Windsor, Ontario, a city next to Detroit, Michigan. I acquired the house for $350,000 with 3 bedrooms and 1 washroom, investing $30,000 in rehab. The downpayment stands at $108,000, and I have a mortgage at 4.9%, costing $1450/month. Additional expenses include property management at $142/month, property tax at $1700/year, and other costs like insurance and maintenance. Currently, the property is rented at $2100/month.

The house, built in the 1900s, requires significant renovation, and the tenant frequently requests various repairs and maintenance, such as duct cleaning and appliance upgrades. I’ve heard about recent developments in the city, including Stelantes battery establishment, an Amazon warehouse, a new bridge, and the construction of a mega hospital.

Considering the property’s condition, ongoing expenses, and potential development in the area, I’m contemplating whether to sell, especially since the property is not cash flowing and needs substantial renovations. The renovator mentioned the house is in poor condition, requiring a ground-up renovation, which would demand additional funding.

I’d greatly appreciate your insights and advice on this matter. Thank you so much!