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Any IDOs you know of or how would you stay informed on airdrops for good projects? Looking at something like Klima that airdropped 100 coins to holders of $1000 NFTs on its launch. Those coins are worth $200,000 now. 200x return in a month. Do you basically need to poke around discords and get lucky?
https://klimadao.medium.com/what-is-klima-dao-initial-discord-offering-5735c996c2ac
is the rental market getting better?
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If your net income (cash flow + equity payments - income tax) is still positive, I'd keep it. If not, your choice is pay selling costs or ride it out in the hopes appreciation outweighs your costs over a reasonably short time period (say 5 years) or it becomes cashflow positive. In certain high growth markets, that's what you have to do.
Need more data. What did your numbers look like when you were buying the property? Did you over renovate? Did rents drop (no indication this is happening)?
Thanks, see above.
Subject Expert
Did rent prices drop in your area? Or did you buy before you evaluated what market rate rent would be? Im not sure I follow why you’re in the red here.
Could you sell it at a gain? Could you do short term or mid term rentals?
Subject Expert
Waiting for equity to build is a gamble. If you’re losing $X per month, on the hope / gamble that the value will increase… Especially if rents continue to decline. If you can sell flat or at a gain, I think that’s worth losing $x per month, especially if that loss is before calculating for repairs / maintenance / vacancy. If you’re at a lost before accounting for repairs / maintenance / vacancy reserves…. You’re further in the red than you realize. I’d sell and move on.
One of my rental properties in an appreciation market only cashflows $450 per month, and I put all of that into a reserve account for repairs and vacancy. The house has already appreciated ~$30k in 2 years, but prices have stagnated the last 6 months. If I need to hold another 3 to 5 years to get another $50k to $70k in appreciation to hit my IRR goals, at least I have the reserves and rent growth to ride that out.
Do you have a great interest rate at least?
Sometimes it’s better to cut your losses. Taxes will continue to rise as the place appreciates. Probably will be hard for rent to catch up. Where is this place? That could give us better commentary for potential appreciation.
Is the monthly outflow net of the principal repayment? You may actually be positive if the renter also pays off your mortgage
This
Most rentals that cash flow negative are no bueno
Opportunity cost. I would make projections and compare those projections to my other options.