Negative cashflow condo in Honolulu, HI

[Sanjeev Gurung]

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!