Reply to is it "worth" it to keep a rental where you lose $400/month

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I have been renting out a condo in Arlington where I lose $400/month.  The value has gone up about 100K- however I would only clear about 25K after capital gains, realtor fees and paying off a HELOC. I can't refinance b/c it's an "investment" property.

Cons:  I fear that I will have to put some money into it pretty soon since the appliances are all original (1997) and it needs some updating.  I think it would take about 5 years to net zero on the property.

Pros:  great for taxes and taking the loss but not sure it's worth it

thoughts?[/quote]

Nothing personal, but this notion of the tax break being great drives me nuts - you only get the tax break because you are paying interest.  The mortgage interest deduction helps people afford homes, it's not a tax benefit.[/quote]

That's not true.  You get to deduct passive losses on real estate if your income is under $100k (and in part up to $150k).  The loss on this home is likely to be more than just the mortgage interest, it will be the net loss of all the expenses of keeping this house, minus the rent received.[/quote]

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