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Should I Sell or Hold My Negative Cash Flow Rental in Austin, TX?

Looking for advice from experienced real estate investors. I own a townhome in Austin, TX, but I’m stuck in a negative cash flow and equity situation, and I’m debating whether to sell or hold.

The Numbers: Market value: ~$349k

Mortgage balance: $342K

Net seller sheet (after fees, closing costs, etc.): - $14K (I’d have to bring this to closing)

Rent doesn’t fully cover expenses, so I’m losing $400/month

Market conditions: Buyer’s market, homes selling below asking, not appreciating fast

The Dilemma:

Sell now → Take a $14K loss but eliminate the $400/month loss ($4,800/year).

Hold → Keep paying $400/month and hope for appreciation, but no guarantee the market will rebound quickly.

What Would You Do?

Would love to hear from investors who’ve been in similar situations. Would you cut your losses and sell, or hold and wait for the market to recover?

submitted by /u/technicalmoneky
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source https://www.reddit.com/r/RealEstate/comments/1j04g4e/should_i_sell_or_hold_my_negative_cash_flow/
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