Knowing when to cut your losses?

[Greg Fend]

When do you know it's time to call it quits on a property?

I have a SFH in MD that I purchased as a primary residence while living in MD from 2008-2010. I held onto it because I was (and still am) upside down and wouldn't be able to sell it for what I owe. I've had little/no issues keeping it continually rented through a property manager. I did a re-fi to get my mortgage payment down, but still get less in rental income than my mortgage payment.

This was tolerable when I didn't have any other properties, and I could use the tax benefits. I didn't really consider it an "investment property" as I had it for my primary and have just been trying to minimize the cost of ownership. Now, however, I've become a partner on three MFHs, and I would lump this into my portfolio as an "investment property."

Should I take the big hit now and get out of it ASAP, or keep the ~$200/month loss for a while longer and see if I can maybe at least break even later on down the road?

Any thoughts/insights?

Greg