Flip gone bad. Need advice please.

[Beau Walsh]

So I purchased a condo that I was going to live in flip. I did all the renovations and turned out great even after a few hiccups and came in on budget ($40k). But the hoa voted and passed special assessments to upgrade the building envelope and is doing it in a few sections. The first assessment has already cost me ($25k) and they don't know what the future ones will cost but might be another $30-$40k. This is eaten away at my profit because I now have the unexpected cost and can't price the property at the higher price that I had originally planned cause of the upcoming repairs. I've had two offers and both deals fell apart cause of the upcoming work, and now my agent is wanting me to drop my price again. I'm already at a break even price and if I lower it any more I will begin to lose money. My agent is suggesting that I lower it $30k-$40k and hope for multiple offers( the market I'm in is red hot and am seeing multiple offers on most things and a lot are going for well over asking). That scares me. I have permission to rent it but wouldn't get me around the upcoming $30k+ work coming up . Am I better to cut my losses and call it a learning experience and sell at a loss or hold on to it ? Any advice would be great. Thanks bp

[Bob B.]

I would suggest you cut your losses and move on unless there's a strong reason to believe that the property value will increase like crazy in the near future.  Maybe with the new assessments that might be happen.  A lot of investors make good money on condos but I have stayed away from them for the reasons you stated.

Good Luck