Posted by Frank on February 28, 2000 at 12:28:10:
Thanks for the advice - although I left out some info. First, the property is new construction - and is less than 3 years old so I’m hoping I wouldn’t have to replace anything for a while. Second, I have a 30-year fixed at 7 1/8 and the association fee has only gone up 5 dollars so far.
I bought the place for $122,000 and then did a dumb thing by putting too much into it - I added $14,000 of upgrades so my bottom line was $136,000. The property is now worth $142,000. The area is “hot” according to the realtors I’ve talked to. I would like to keep it but since I’m violating the number one rule of real estate investing (which is never to buy or hold a property with a negative cash flow), I’m wondering if I would be making a mistake by keeping it.