Need advice on whether to sell

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Hi all,

I took the plunge about a year ago and bought my first condo 2BR/2BA. I figured I would buy it for below market value, do most of my own repairs, and then sell after 2 years so i don't have to pay capital gains tax. I am living with a roommate and assume we pay equal rent.

Lately i've been reading some other threads and started doing the math using some of MikeOH's calculations and realized i might be losing money, especially now that my assessments went up and they levied another 3 years of special assessments.

basically gross rents are about 18,000 (1500 per month)
expenses: 9,000
NOI: 9,000

Debt Service: 9600 (800 per month)

So if I used these calculations just to analyze the deal, I should have known right away I was going to negative cashflow. But I was okay with negative cashflow if I planned on flipping in 2 years ---as long as the negative cashflow was small.

But now after they raised assessments + added special assessments, I think my expenses are ridiculous. I pay 780 a month for Assessments! O_o

If you add all up my other expenses, it is around 13k-14k annually which means I'm losing like 5k a year!

So my question is: do you just accept another 5k year loss and sell it hopefully for enough profit to make up your loses, or do you try to get the hell out of it now? Correct me if I'm wrong, but i believe you can sell and roll your profits tax free into a more expensive property only after 1 yr.

In Oct it will be 1 year.

Thoughts?