Poor cash flowing House: List it, Keep Renting It, or AirBnB It?

[Corey Schaecher]

Alright BP Community, I need some advice here. I have to make a decision soon on a poorly cash-flowing house that was our first rental out of necessity because my wife bought it in 2006 with 0% down (ugh). My tenants just moved out, do I keep renting, sell it and find a replacement property, or turn it into an AirBNB. The house is a cute 3 bed, 2 bath in a convenient area that's very popular with post-college aged folks, in the Dogtown area of St. Louis. An agent very well versed in the area said it should sell pretty quickly for 160-165k. The current financials for the place look like this - spoiler alert, it doesn't satisfy the 1% rule: Purchase Price in 2006: $165K Current Loan Payoff: $138,500 (0% down after all) Rental Since: 2009 Current Monthly Mortgage (taxes, insurance, and PMI [ugh] included: $1228 Current Monthly rent: $1400 Vacancy has never been more than 3 weeks, and that's just because of slow turnaround time by me, popular spot. I'd have to stage the house for sale ($1500) and do repairs of about $750 The roof was put on when the house was renovated in 2006. The furnace and water heater are old, and an inspector will probably say i need to replace a retaining wall that's leaning slightly toward the bordering neighbor's house (they have to split the cost under state laws) and fix a few other things the flippers did hastily in 2006. I need to make a decision ASAP because I either need to get it listed or get tenants in there by July 1, 2016. HELP!