New Investors Seeking Advice on our 2 Rental Condos!

[Zander Barth]

I'm looking for some other investors' thoughts on how to proceed over the next couple years in this current market. My wife and I have 2 rental condos in the LoSo / Madison Park area of Charlotte that were originally both our primary residences pre-marriage. We househacked these with only 5% down, and now they are full functioning rentals that have appreciated tremendously (50%+) since we bought them. (As info, we now live in Charleston, SC in an STR househack.)

We manage these condos on our own (for now), and they are low-maintenance with solid tenants. We have a really solid COCROI (11% and 39%) but of course the ROE is much lower now (1.3% and 3.6%). The only headache is the COA, which has significant costs and the building is poorly maintained (roof leaks and bad projects via special assessment). Our condos are largely unaffected right now, but we feel the building itself is likely a ticking time-bomb even though the LoSo area is primed for even more explosion over the next several years.

We have been in two minds: The low headache, high returns, and promising location are great, but the low ROE and poorly maintained building seem like risks.

What strategies would y'all use here? Is it worth exiting these properties to try to find something with the crazy market / high interest debt we're seeing?

Thanks so much!