Sell or hold poorly chosen property

[Kenneth LaVoie]

I started out fast. I had a 5 year plan and condensed it to 1. As a result, I made a few mistakes all at once vs. make a mistake, learn, make another, learn from that, etc. Okay, lesson learned, but "compression" is in my genes, if I get into another business, I'll probably do the same thing. (since the first couple of mistakes, the rest of our 43 units are grossing 2.2% to 3.7% of purchase price, adhering nicely to the "2% rule")

Anyway, I wanted to get some feedback from those wiser than I. I have a duplex that I think we should sell. I paid 110k ARC plus I've put a few grand into it since. It's a big beautiful place, formal dining rooms, 9' ceilings, fireplaces, etc. classy part of town.

I'm torn. Do we unload it in the interest of optimizing our portfolio? I know we shouldn't really bank on appreciation, but this is a very classy place and does actually have some potential. 2d unit has 3 additional BRs on third floor not being used. Could be turned into efficiency, or simply 3 BRS added to existing 2BR apartment. but it will take time and money to increase the income and potential.

So my real question should probably be, "what do you do when you make a boo boo? Do you hold on and let rent increases cure the mediocrity of the investment or do you get the horse running without a limp and sell it?" Any suggestions or war stories would be great! Thank you!