Sell or Refi? Negative cash flow in an appreciated market.

[Sherwin Gonzales]

I currently own a loft that I am renting out in an up and coming neighborhood that has many planned developments in the works, which include apartments, retail, parks, etc. all walking distance from my property.

The property is producing me negative cash flow now and if I choose to refi and keep the property, it will be -$600 out of my pocket every month to cover items such items as the property tax, HOA, etc. The current rent only covers the mortgage.

According to zestimate, which I know is not entirely accurate but just for the sake of argument, the property has appreciated 50k in the past 6 months.

Should I refi and keep the property at -$600 per month (-$7200 per year) hoping that within a years time the property would appreciate at least $7200 to cover my losses or should I just sell and take the equity and buy another property?

I owe 409k in loans and my neighbor just sold his property, which is a mirrored version of my loft, just 6 months ago for 527k.

Thanks in advance for any advice!