To sell or hold, that is the question.

[Mike Sattem]

I have a 2/1 home that was actually my wife and I's first house that we turned into a rental when we bought our new home. Being in a college town is great, tons of renters, however their move in and out schedule sticks to the school year, so if they leave early, finding new renters can be tough. I have dropped the price on this home down to rock bottom to get tenants in and still am having no luck. I have $30K cash equity in this home, not to mention the $15K in upgrades, however I can only sell it for what I paid for it, maybe a little less even. So, the question is this, should I continue to hunt for renters and possibly eat money every month due to no tenants, or low paying tenants, or do I sell it and lose not only the money I have paid in upgrades, but also some of my paid principal?

[David Krulac]

@Mike Sattem

Most college rentals the LL makes tenants sign a 12 month lease and they pay for the summer months weather they are there or not. Also many college rentals require parents to co-sign, ask me how I know this.

otoh, personally I prefer 3 or 4 br rentals over 2s, even though I do have some 2s that I rent and just finished a rehab on a 2 that we're keeping to rent.

A case can be made to sell this property and get a better rental property. Many properties are just not good rentals for one reason or another. we had one where parking was tight, tenants didn't like it and didn't stay long term. What did we do we sold it to an owner occupant and bought a better rental some place else.