Rental property generates a loss

[v***@yahoo.com]

My rental property is close to being paid off and when I did my taxes
it showed a loss ( mainly due to depreciation as it is new
construction ). Is this then a good reason to sell it off as I am no
longer benefiting from 'leveraging'? Also does the income tax loss
suggest this is not such a good investment or are losses typical of
'profitable' real estate. I know there are zillions of spreadsheets
calculations I can do and have done. However I would like to just
keep things simple and focus on the two facts about being paid off
and generating a loss.

[John A. Weeks III]

Post by v***@yahoo.com
My rental property is close to being paid off and when I did my taxes
it showed a loss ( mainly due to depreciation as it is new
construction ). Is this then a good reason to sell it off as I am no
longer benefiting from 'leveraging'?

Does it have negative cash flow, or is this just a paper loss?
If it is high negative, then you may want to sell it off. The
only problem is that it is probably a bad time to sell right now.

Leverage isn't an issue. You can always get the leverage going
for you by taking out an equity loan against the property, and
then buying another property with that cash.

-john-