Should I cut my losses or hold on?

Hi,
I have a 3x1 IP in a not so desirable part of the Gold Coast. It's been problem after problem, I've been through 5 tenants in the two years that I've had it (all of which have been problem tennants, breakages, repairs, arrears etc. The neighbours on both sides and the back are constantly having domestics at all hours of the day and night. So even if I did manage to find a good tennant they probably wouldn't stay long due to the neighbours.
I originally purchased it because I got such a great deal and the yield was great. Bought for $280k a couple of years ago and was renting at $330.
Now rent has gone up to $350 however out of 6 open homes Ive only had 2 very unsuitable applications. I had the house valued at around $310k.
So if I sell I'll be at a slight loss.
Should I hold on and hope house prices go up and keep putting up with bad tennants or cut my losses and sell?
Thank you :)
 
Cut your losses and move on and get yourself a better life, this sort of stuff just burns a hole in your pocket, creates stress and who needs it, with properties like this you will want to throw away investing. Put it down to a lesson learnt and move on, find other opportunities.

My suggestion is to research thoroughly to ensure you get the best selling agent in the area.
 
Hi,
I have a 3x1 IP in a not so desirable part of the Gold Coast. It's been problem after problem, I've been through 5 tenants in the two years that I've had it (all of which have been problem tennants, breakages, repairs, arrears etc. The neighbours on both sides and the back are constantly having domestics at all hours of the day and night. So even if I did manage to find a good tennant they probably wouldn't stay long due to the neighbours.
I originally purchased it because I got such a great deal and the yield was great. Bought for $280k a couple of years ago and was renting at $330.
Now rent has gone up to $350 however out of 6 open homes Ive only had 2 very unsuitable applications. I had the house valued at around $310k.
So if I sell I'll be at a slight loss.
Should I hold on and hope house prices go up and keep putting up with bad tennants or cut my losses and sell?
Thank you :)

What area is it?
 
Nerang. Don't get me wrong there are great investments to be had there but I just got unlucky with the neighbours
 
It's a shame coz it's a nice quiet street backs onto the nature reserve. Out of all the bad neighbours in that street I'm wedged between the two. Everyone els seems quite pleasent in the street though.
 
Nerang. Don't get me wrong there are great investments to be had there but I just got unlucky with the neighbours

I sold my Nerang property 12 months ago, hard to lease and cash flow was not what I was anticipating due to the time it took to lease the property, from what should have been a positive cash flow investment turned quickly into -ve.

Contact Kris, from LJ Hooker, Nerang, they are the best. I offloaded when the market started to rise. I am assuming you have a house, this market is OK, you will sell it??
 
Good, I would be contacting LJ Hooker, Nerang they work hard for you and have integrity.

We went to auction and it sold when the market was rising, low stock so fortunately sold well and able to move on quickly.

My property in Nerang was dual income, excellent yield, however it took too long to find suitable tenants so perhaps losing 2 months rent pa. I under estimated this market, assuming it would be a cracker of a deal and there would be demand for this property. In West Syd dual income properties seem to rent very well and easily, however Nerang, I don't believe from experience is suitable for this/my product I sold. As you mentioned hard to find suitable tenants = massive headaches.

Lesson learnt.


MTR
 
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I had a similar issue, well yielding prop but bottom of the barrel tenant pool.

Sold it a few months ago and reinvested cash in a number of better IP's, inc 2 dev sites (one settled a week ago)
 
is it possible to renovate, get rent up and a better tenant pool? or property already in good condition, just lousy area (and neighbors by the sounds of it)?
 
I know some people that might want to move in. So if that's the case I might get another 6 months rent (6months capital growth) of it. That's the max time anyone has ever wanted to stay there :/
I'm putting it up for sale anyway, at the same time as being listed for tenants. Whichever happens first I'll roll with. But going to be quite picky about tenants.
 
I know some people that might want to move in. So if that's the case I might get another 6 months rent (6months capital growth) of it. That's the max time anyone has ever wanted to stay there :/
I'm putting it up for sale anyway, at the same time as being listed for tenants. Whichever happens first I'll roll with. But going to be quite picky about tenants.

You will find it very very hard to rent while it is for sale.

Is the main issue the neighbours? Are they tenants? If so the neighbours could change in 6-12 months, maybe.
 
Hi Ellmay

Life is too short to be constantly stressed about anything that you have ultimate control over- this includes investments (of any class). The "never sell" brigade may disagree but at the end of the day some things are more important than the possibility of a profit. Those of us who have been around for a while have probably sold a dog or two along the way. Timing is rarely perfect so do what you need to do to move on and avoid more angst. Best wishes :)
 
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