Rental property advice

[Dylan Bowman]

Hello Bigger pockets community!

I’m an now learning the hard way about how important it is to make sure the numbers and math behind a deal need to make sense in order to do a deal unfortunately.

I bought my home to live in a few years ago in Visalia California. The purchase price was $166,000 and I did not know much at all about real estate investing when I made the purchase. I owe $150,000. I have since put about $10,000 in rehab costs and moved out. My mortgage is $1150 per month and I am renting it for $1350 per month. I can sell the property in todays market for about $215,000. Which is a lower priced comp for this neighborhood. It is also under a FHA loan that I have not yet refinanced. I've had it as a rental now for about 3 months and I have been negatively cash flowing every month since. The tenants are in a one year lease with a local property management. The home is in better condition than when I lived in it, but I have since received a a 5 page list of complaints from the tenants that they feel need to be addressed.

My question is since the property is negatively cash flowing, what would you do in this kind of situation?

I have thought about refinancing the property into a conventional loan to get rid of the PMI and bring my mortgage payment down a little. But I may still be negatively cash flowing.

Or should I cut my losses and sell the property once the year lease is over and use that money to buy more properties?

Any other options that I may have overlooked?

Thank you in advance for any and all questions answered.