Hi Randall-Congratulations on buying a rental property well back in 2020.I am sorry to hear the property is now cashflow negative $200 a month.Your question is should you sell or continue to keep it with the negative cashflow.Depends on your personal goals and if being negative $200 a month plus any unexpected repairs or vacancies is affordable to you, but if you can solve the negative cashflow by turning the property into a furnished mid-term rental, for example, your future self may thank you.To Your Success!

Quote from @Justin Jefferson: Hi my goal is to also create ownership and build my assets for the future.

If your occupancy rate drops, you may able to patch the damage by trying other platforms but this will further decrease your ranking on the system in the future. 

Corporations and large property managers are the future, and the hoops you need to jump thru are necessary because of too much legislation.

And even it's SF when you purchase it, again because it's not 100% MF including the county/city classification, you can use rental income from both units to help you qualify for future investments.Option #3 is something to use only when you're not willing or able to move into the property.

the economy is super promising and the future looks bright as far as appreciation goes.

Essentially you are creating future tax free income by being able to roll over these losses.If your income is between $100,000 and $150,000, a portion of that $150 loss is deductible and the rest rolls forward.If your income is less than $100,000, your loss is fully deductible - and THAT's the cool thing about rental income. 

CA acts in a neglectful arrogant manner, assume historical greatness will automatically deliver future greatness.

I am creating an llc with a couple friends as we go into this new endeavor.

On the other hand, I've been a lender for over 30 years and I can say for certain that past predicts the future when it comes to paying bills.