BRRRR gone horribly wrong -- sell and move on?

[Drew Clayton]

I picked up a 3/1 SFH in Columbus, OH in October '21 for $82k that had a den that just needed a closet to become an instant 4/1. Original cash flow after a 75% cash-out refi was calculated to have been around $217/mo with about $10k left in the deal, assuming a $145k ARV.

Long story short, the rehab process went badly, and now with all the extra time and money that went in, plus the interest rate hike, my refi would be making less than $100/mo after setting money aside for vacancy, capex, etc., and I'll only be able to get back like $14k after closing costs. Thankfully, the ARV is now closer to $180k. Between down payment, rehab, and holding costs, I have something like $90k sitting in it now.

I'm thinking at this point it makes the most sense to sell it, even if it's at a bit of a loss, and reapply all that capital into better-performing assets. Wanted to temperature check with the community first, though, in case I'm missing something.

Bit more background:

I'm out of state, but had an investing partner (he didn't have equity in this property) who was acting a project manager for me who confirmed my estimate of $35-40k reno in under three months. That project manager turned out to be a disaster, and it's been about 8 months, and I've pumped in around $80k of renovation because every time he (and later other contractors because he's no longer involved) said it was done, I would find really obvious things that required new teams to come in and fix. The most-recent "ok, it's done" was early May, and when my property manager sent in cleaners, they found a bunch of things that need more work (brand-new siding & gutters falling off the house, windows with gaps between the frame & drywall, etc.). I now have to send in yet another crew to fix all that stuff.