Help! Should I sell, refinance or Struggle it out?

[Almir Alic]

Owned a condo since 2007, depreciation set in after the housing crash, it took me 8 years to break even on my balance. I now have 6.8 years left as the contractual remaining term. The recovery is extremely slow, if not non-existent. I made a vow to myself to sell it no later than this year. I have hated this property for a while. However...

I recently found out that the rent rates have gone way up in my neighborhood, and that I'm finally able to refinance since I repaired my credit.

I did the math and after HOA dues of $120 (and threatening to be bumped up to $145-$160 soon), and the rate dropped from 6.5% to 3.65% I'd make a monthly rental income of anywhere from $130-$170.

Quick refi stats:  

• 15 year term
• 3.65%
• $1100  down payment on the remaining balance of $31,900

I've already had a real estate agent working on putting it on the market, but told her to hold on a minute. I feel bad keeping her waiting while I'm trying to make the biggest decision of my life.

I would love to have some positive cash flow for once in my life from this property. I've never experienced that before. I could probably go rent something that is not in a slum for once.

But having experienced having different types of renters throughout the years I have seen all sorts of problems, including water seeping in from a busted water heater from the third floor (I own a 1st floor unit). I'm worried about the potential disasters that are out of my control and possible expensive repairs knocking any monthly cashflow I might get out the window.

Should I just sell it and get rid of this curse once and for all?

There's a third option.... if I was to struggle it out and pay around $400 extra towards principal for 3.5 years that would give me the best profit obviously. In that case I would make a $400 monthly cashflow instead of $~150 monthly cashflow.

If I was to go this route, I'd probably get a roommate to help with bills at least. I've already had two jobs in the recent past and that is a lifestyle I have more or less denounced.

Here's the short version of all that:

Option one:

• Refinance now and make anywhere from $130 to $170 a month, depending on HOA fees

Option two:

• Sell and go look for other properties if I have to be a real estate investor

Option three:

• Struggle it out, maybe get a roommate to help with bills, live like no one else for around 3-4 years so that I can live like no one else til the end of time

Your help is much appreciated.

[Thomas S.]

Sell.

Dreaming of better days does not pay the bills. In addition paying off the principal with your own money increases your profit by Zero. If the market takes a turn you simply lose more.

Sell, Sell, Sell and get some sleep at night you need a break.