As a “land pauper,” I disagree. I have renters in Seattle and lose $1k a month because HOA and property taxes. I get zero tax breaks on the loss. Nothing. I’d kick them out and sell, but apparently Seattle is still recovering from COVID. Who knows. It was a bad investment and I learned a lot. That education was expensive. Not all landlords do well.
I don't cry about the money I lost investing in startups I just keep investing. Why are you crying about the money you are losing like you are supposed to be absolutely guaranteed to make money?
The reason you aren't selling is because you are lying or you believe the government should bail you out of your bad decisions.
Who is going to buy a house occupied with tenants and a negative $1k/month cash flow?
Only someone who would pay less than the same house without tenants, which might not be enough to cover the outstanding balance of the mortgage, which means a short sale, which means you need the lender to approve (which they won’t).
What incentive is there to own a negative income asset unless you are lying and you actually are net positive. Unless of course you are the latter and you are claiming that someone should bail you out?
"I'm completely underwater on this asset but if I sell I lose money" yeah that's how that works it's called an investment you can win or lose.
Negative cash flow is usually situation dependent. Is the OP negative because they got a mortgage for 100% of the price at 8%, hoping to quickly flip or refinance at lower rates? Ok - I'll pay cash, and without massive interest payments, I'll be positive $1k/month immediately.
Are you claiming you're having a loss based on the cash outflow that is going towards paying down the mortgage principle? Because otherwise property taxes, HOA protection money, mortgage interest, and the rest of your expenses are all deductible. If you had an actual loss on your schedule E, you'd be getting a tax break from subtracting (not just deducting) that loss from the rest of your income. So if my suspicion is correct, you are not actually "losing $1k a month" but rather that $1k plus your profit is essentially going into a non-optional savings account.
you are simultaneously complaining about your loss, doing nothing to stop it, and postulating either that you cannot sell(?) or that continuing to seek rent will ultimately be a net profit for you.
