To Sell And Take A Loss... Or Hang In There....

[Jeff Stansberry]

In 2007 I bought a Duplex in a small town called Barstow, CA for $230k. The unthinkable happened, and home values and rents dropped. It was renting for $750 each, now it's at $625 each. 

Now, in 2018 the value of the duplex is worth $188k (Zillow) and I own $140k left on it. Because rents went down, and have not come back up to 2007 levels, my rents fully occupied match almost exactly with my mortgage payments. Since the rents make the mortgage payments I want to say keep it, but any CapEx and repairs (already had to replace both AC units) come directly out of pocket.

So, I'm curious to other's opinions as if I should sell, take the around $55k loss of the purchase price and then take that $40k that I could walk away with roughly (owe $140k, it's worth $188) along with my tax deductions accruing over the years and try buy something else that will cash flow better. OR hang tight for many years, raise rents when or if I can and use my other rental property cashflow to weather CapEx expenses.

All thoughts and ideas are appreciated!

Thanks!