Buy or Sell in Silicon Valley- Single Family home

[Lila Lam]

My husband and I have a single family rental home in Silicon Valley that I'm breaking even when we have tenants. We are cash flow negative right now because our tenants moved out. We may or may not be able to get the rental income. 

We bought the house at peak time and if we sell the house for the price that we bought it for, we will lose around $80-100K. If we keep the house and don't have tenants for a few months, we will be down minimum $10K.  We have cash reserves and cushion so we are not in a rush to sell or get tenants in. 

House has good bones. Great views of the mountains and in a quiet neighborhood with decent schools. 

1. Should we sell then use the cash to invest in passive real estate out of state or possibly in state? If so, I would like to get some help from real estate investors in and out of state. If we sell, we like to figure out what to do with our money. Multi-units, Commercial, Storage Units, etc? 

2. Keep the house and look for tenants. Buy and hold in Silicon Valley. Negative cash flow right now. 

Thank you so much for your advice. I'm looking to work with real estate investors whether we keep the house or not.  Any advice is greatly appreciated. 

Best,

LL