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Updated over 6 years ago,
Is this an asset or liability
I have a rental property that has a negative $150 cash flow and that’s not including repairs that come up occasionally. I bought it in 2015 and the value hasn’t appreciated much since.
This was my first investment property and I’m now thinking that maybe it wasn’t a smart investment afterall.
It’s a condo which also has foundation issues which the hoa is supposed to take care of but only god knows when that will happen.
Should I hold on to it while I have a tenant in there and wait for the hoa to someday fix the foundation problems and then sell or should I get rid of it now knowing that I won’t be able to sell it for a fair price right now given the foundation problems?
Is this considered an asset or a liability based on the rich dad poor dad definition? Obviously I’m paying money out of pocket but the rent IS paying down part of the mortgage.