Rehab is $14K House Has Been Underperforming. Advice?

[Yuuj V.]

Hello BP!

I am am trying to look at things logically and think bigger picture, long term. But in the micro, at the current moment, I am really losing motivation on this asset that's honestly been through nothing but issues. The house is fine, but maybe it's the luck or something. I own this out of state. 

It is a 3 bd, 1.5 ba, 1155 sqft property in IL.  

Purchased for $100,000 I purchased it in 2018, 25% down. 

In 2018, it went un-tenanted for an entire year. I'd attribute that to the poor management company / lots of miscommunication and just general incompetence. Eventually changed them out and went with a new PM.

As far as rehab costs, the costs in 2018 into 2019 were about $12,000

In 2019, it rented for $1900, with a mortgage of $1150 and PM fee of $171, so CF was ~$579. Didn't require much maintenance that year. 

Now in 2020, was going fine up until March where COVID hit and things went wrong. Essentially, I went without rent for 6 months, on top of a $2.3K rehab/repair bill. Tenant was living free while we tried to get funds from the state to pay for SEC8. Tenant was taking advantage of the eviction moratorium. 

Now, tenant finally decided to move on. 

The PM got a quote for $14,000 in repairs. This will cover changing out the floor for sturdier flooring and making it rent-ready. 

The Agent believes he can get $2,000 for the rents. The PM also lowered my PM fee by .50%. 

I believe the PM is being honest, and believe the construction company is also being honest. 

I'm trying to keep things in perspective. My plan is to get an appraisal afterwards and see what the price of the house could be. I've been negative in the deep red with this house over 3 years. I could wait 2 more years to see what happens. I don't think the CF will help recoup my investments / rehab funds within 10 years. 

Only solace I have is knowing I get to claim these large rehabs on my taxes, but even that may not truly off set anything or be worth while. 

I'm trying to rationalize keeping this. It's a solid property, that I believe has just been through terrible luck and I want to believe it can be turned around. 

Worse case, I get my appraisal back, maybe it's jumped up a bit (Zillow says its worth $110K, Redfin says $160K) and I can 1031 it for something else, or just keep it. 

Trying to look in the long term, I told myself if an asset doesnt perform within 5 years, I should dump it. 

Looking for any input. 

Thanks!