I bought a 1 bedroom condo in 2005 for $135k. It’s just outside of Philly on the “Main Line”. It’s an affluent area with blue ribbon schools in a great location within walking distance to town and the train station into Center City Philadelphia as well as the suburbs. By being outside the city (the city line is a few blocks away), you save on city wage tax. 

I've been renting the condo out at a loss since I moved out in 2007 because it was underwater for a long time. I couldn't even refinance when rates were low. Back in 2014, a mortgage appraiser valued the home at $85k, comparing the condo to an REO property and a co-op in another town since nothing in the complex had sold in a few years. Everyone was holding on to their condos like me. Since then, I've paid several special assessments, replaced the HVAC and hot water heater twice, and absorbed tax and HOA increases. Back in 2005, I was able to charge about $1050 for rent and now I was finally able to increase to $1250 because rents in the area have finally gone up. I'm still not breaking even but not losing a ton.

FINALLY this place is nearly paid off. In hindsight, I’m certain that I would have done better putting my money into an S&P index fund (even with tenants helping pay down the principal) but you know what they say about hindsight…


I was excited to see that two 2 bedrooms in the complex have sold for a record price (for the complex) at over $200. I was excited and thought that this would be the year to sell. Using square feet as a basis, I estimated that this meant that my condo could sell for around $170k. However recently a few 1 bedrooms sold for around $130k…still less than what I paid for my 1 bedroom!


I’ve been talking to the listing agent for the 2 bedroom that went for $220k. The owner had to spend about $25k to get this much for their condo.  For a “typical” home, $25k would be reasonable, but we both agree that it’s not worth putting more than a few thousand in - if that. And he won’t really suggest a listing price, other than to say that a few 1 bedrooms went for $130k recently. My unit has a few things going for it, such as being on the top floor. It is well-maintained and there probably wouldn’t be many inspection findings. However it doesn’t have a garage space and kitchen has the old 80s cabinets (realtor says that we can paint them). Appliances are newer.

Do I cut my losses and just sell the place? It kills me to lose money after so many years of effort but I could at least have a down payment for perhaps two income producing rental homes that might actually appreciate one day (in a totally different state that is!). If I keep the condo, it will be paid off soon at which point I’ll get about $800/month in income (not factoring in maintenance and turnover). If all I did was sell and put the money in a high yield savings account, I could make nearly that much with no effort. 

If I do sell, would it be worth waiting until the renters move out in the spring (I would need to terminate the lease)? I would make some minor updates then (eg painting kitchen cabinets). I fear that I wouldn’t be to sell after terminating the lease, or that I wouldn’t get more money for the condo and now I’ve just spent more than I needed to. On the flip side, I could probably update the cabinets while the tenants lived there, and tell them that if I don’t find a buyer, at least they will have a nice looking kitchen.