Hold vs Sell Sothern California Property

[Nicholas Creahan]

Hey guys!

Looking for the extra push to sell or hold my southern California condo. I have about 200-220k of equity in my place. After owning for 6 years, my expensive HOA (340/month) is really dampening my cash flow. I actually am paying roughly 100/month to keep it and run it after all fees. Looking at cap rates, it is at 2.67%. Would you recommend selling since my tenant leave at the months end in July and buy more property or would you find this place worth keeping. It is worth noting that I bought with VA in 2016 so it was fully financed so that is why after 6 years I am still having to pay a small amount AND the market rents are at least 2600/ month which is a 450 increase from previously rented (I had a long term renter for the past 3 years so rents were low.) My concerns with keeping are the HOA and just how the housing market in SoCal looks. Reasons to keep are that I will FINALLY be able to cash flow a little bit this year if we decided to keep, plus we have enough capital to buy another property in other markets. Thank you to any input and opinions or solutions!

-Nick

[Rick Albert]

I'm in the same boat as you. I have a condo in Los Angeles.

What I'm doing is listing for 30 days and if I don't get my price, I will rent it out. The only reason to sell is if you know what you will be doing with the money. If you don't know what to do with it, then keep it. 

I don't know the San Diego market that well but generally $340/month is the norm or actually low. I'm seeing the $400+ range here in L.A.