Should I sell a rental property now ?

[Jasmine Lu]

Hey, I am new to BP. I started RE investing before really knowing the ABCs. Now I am seeking some help to decide if I should sell a rental unit. I bought a condo unit for 388k in 2017 ( I live in a high cost area). The current rent is 1900/month and it’s a two year lease ending August 2020. Now I know it’s a bad investment ... the question now is whether to hold or sell. It currently costs me $500 to maintain this unit after rent (aka negative cash flow). A similar unit got sold in Jan for 390k, which lowered the market price a lot. So the realtor said my unit might only gets 425k at most. Plus I need to figure out a way to incentivize my tenant to move out earlier. On the other hand, I could keep hold the unit until the lease ends next summer or even longer. Do some reno and sell for a higher price. But my concern is that the market might drop in the future. I have enough cash reserve to hold the unit for longer time. If I do sell the unit, I will probably put the proceeds into a index fund as I still have other rentals. What are some factors I should consider when make a sell/hold decision? Any suggestions would help. Thanks a lot!