Should I sell my accidental rental?

[Rosy Bruno]

Hi All,

So I have an accidental rental (we bought it as our home and decided to rent after moving) that we acquired before finding BP seven years later. After running the numbers through the calculator, we don't really cash flow on it. Before figuring this out, my husband and I decided to keep it for a few more years since the city is gentrifying the area and we have had some appreciation since the project started and they have yet to complete it. So I'm basically assuming the value will go up a bit more.

I am currently looking for another investment property here in Seattle but am low on funds (heche the thought of selling this one and 1031 exchange). But how should I go about evaluating whether the supposed appreciation will offset the current negative cash flow especially when taking into consideration the potential cash flow of a househack here (fyi - it's been difficult for me to find good cash flowing deals here and I need somewhere to live so it would have to be a house hack).

So I guess I'm more so asking what you would do to evaluate this particular situation. What numbers would you look at and why? I hope I have explained myself well but please feel free to ask for clarifications.

Thank you so much!!!

Rosy

[Thomas S.]

From my perspective if it has negative or very low positive cash flow I would sell in a heart beat. Properties like that are money pits when the repairs begin to roll in.

If you are holding out for appreciation and the markets turn, and they will, you will never recover.