“Should I sell and take the loss, or hold on and rent it out?”
Over the past few months, this has been the #1 question I’ve been getting from condo investors.
Many purchased pre-construction condos during the peak of the 2021–2022 market, only to close today facing a monthly cash shortfall of $1,500+ and an equity loss exceeding $150,000.
To get back to where they started, condo values would need to recover by 20% to 30% which could take 5 to 7 years.
Essentially, investors holding onto these properties are playing a high-stakes gambling game: constantly betting on how long they can hold out, and how much more cash they are willing to lose before the market finally turns around.
Before you choose your path, you need to run the numbers objectively.
Scenario 1: Renting It Out and Taking the Slow Bleed
The Hidden Tenant Risks
Many investors tell me, “I’ll just rent it out for a few years and then sell when the market improves.”
The problem is that plans don’t always go according to plan.
- What happens if the tenant stops paying rent?
- What happens if they cause significant damage to the unit?
- What happens if they refuse to leave when you want to sell?
If you suddenly have a non-paying tenant, can you cover 100% of the carrying costs yourself? In a market where cash flow is already deeply negative, losing flexibility can be catastrophic. If circumstances change six months from now, how easily can you exit?
The Liquidity Trap: Selling a tenanted condo in today’s market is almost impossible. Most buyers want vacant possession. By renting it out, you lock yourself out of a sale.
The Real Cost of Waiting
What worries me most are investors who are making a 5- to 7-year bet with only 2 to 3 years of cash reserves remaining. That isn’t investing—that’s gambling on timing.
Let’s look at how the math plays out over time if you choose to hold a negative cash flow property:
| Years Held | Monthly Cash Loss | Total Cash Lost |
| 1 Year | $1,500 | $18,000 |
| 3 Years | $1,500 | $54,000 |
| 5 Years | $1,500 | $90,000 |
| 7 Years | $1,500 | $126,000 |
Scenario 2: Ripping Off the Bandage and Freeing Your Cash
Do You Have the Cash to Exit?
Before you decide to sell, you have to face the ultimate reality check: Do you actually have the liquidity to walk away?
You bought the condo for $600,000. Today it’s worth $450,000, but your mortgage balance is still $500,000. If you sell today, you’re facing a $150,000 loss on paper, and you’ll need to bring roughly $50,000 in cash to closing just to pay off the bank. Before listing, you must ensure you have the capital required to exit.
The Opportunity Cost: The Potential Saving
If you are able to exit, pivot, and redirect that same $1,500 per month into a conservative alternative investment earning a modest 4% annual return, look at how that money grows instead of disappears:
| Time Horizon | Monthly Contribution | Future Investment Value |
| 1 Year | $1,500 | $18,328 |
| 3 Years | $1,500 | $57,294 |
| 5 Years | $1,500 | $99,449 |
| 7 Years | $1,500 | $145,132 |
| 10 Years | $1,500 | $220,875 |
The Takeaway: The exact same money that was disappearing into a negative cash flow property could be working to rebuild your net worth instead.
The Bottom Line
The question isn’t whether the condo market will eventually recover—it almost certainly will. The real question is whether your personal finances can survive long enough to wait for it.
Some investors have strong incomes, substantial reserves, and can comfortably ride out the cycle. But others are running out of runway, hoping the market recovers before their savings completely dry up.
A $150,000 paper loss is incredibly painful. But sometimes, the bigger risk is spending years trying to avoid realizing that loss, slowly draining your cash reserves every month, inducing constant stress, and putting your family’s financial future on hold.
Every situation is entirely unique. Before making a decision this significant, it’s worth running the numbers objectively.
If you are currently facing this dilemma and aren’t sure which path to take, reach out today and let’s map out your options.