Sell or Rent? Townhouse in Hawaii

[Han Yu]

Good morning, I have a 2 Bed 2 Bath townhouse that I purchased last December. I am in the military, and was expecting to keep the house for another 2 years before I have to decide whether to rent or sell.

Recently I have came down on orders to move to Texas (begenning April 2019) and I have to make a decision whether to sell or rent. This property was my first purchase, and I regret not researching and studying about real estate before purchasing. As I read and study real estate investing, the numbers on my townhouse just looks worse and worse. I need some help and insight on how I should deal with this property, so below is the numbers:

Purchase price 392k, No down payment (VA)

Mortgage + HOA: 1950 + 500

Comparable rentals in the area runs 1800-2200, and there are now 6 units in the same townhouse complex on sale (4 in escrow) running 405k - 465k.

I am looking to pay at least 500 out of pocket if I am able to find a renter at 2k. If I sell, I might be lucky to walk out with no loss. Please share your thoughts on my situation, what you would do if you were me..

Thanks for your time and knowledge

[Kevin Hunter]

@Han Yu, based on your numbers and the rents, I would suggest unloading it and re-attacking in Texas.  I have wanted to get into the Hawaii market since I got here but the numbers really don't work for me.  The rents are too low RELATIVE to the purchase prices.  That being said, there are things you can do to offset your selling fees....negotiate with your realtor for a lower commission, try selling by owner, etc....

I never like the idea of selling, but in this case I think it is the right move.  Just my two cents.