Negative cashflow condo in Honolulu, HI
HI BP team!
Newbie here, have been following BP on YouTube but finally decided to join the forum as well.
So here's my story. Bought a 1B/1br/1parking condo in downtown Honolulu, HI for around $357,000 with a VA loan in December 2018, so had no down payment. Repainted the place, changed kitchen countertops to quartz, reglazed the bathroom, and updated the electrics. Refinanced in 2019 with closing costs lumped in for around $368,000. I had to move to Texas due to military orders so decided to rent the place. My current payment including HOA fees and property management fees are $2350. Current rent is $1895, so I have a negative cashflow of around $460 every month.
Now here's the dilemma. Do I keep this negative cashflow condo or do I sell it? This is my mistake, but I am now realizing condo values do not appreciate as much as SFHs. Other units on my building have been selling around for $350-370,000 range. Even after the update and after talking to a couple of lenders, they don't see the value of my condo at $400,000. I have been following the market activity in my building, and I can definitely say my condo is at the top of the range (here's a link for the updated pictures https://www.zillow.com/homedet...
A part of me wants to keep the condo just for the tax benefits. But again, at what costs? Especially when I'm losing over $400 every month...
Any suggestions and info is greatly appreciated!
Most Popular Reply
Aloha @Sanjeev Gurung! I know the Kukui Plaza building very well, as I am a realtor here in Hawaii and live right in the area. I am also active duty military so completely understand the "moving quick due to orders" dilemma after buying a property. If you'd like, I'd be happy to take a look at your place for you and give you some estimates on where your numbers might sit for continuing to hold and waiting for growth, or selling now. Theres 3 units on market now all for $359K, and one in escrow closer to $315K. Let me know if you want to chat and I can help you figure this thing out man! Have a great week