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Hi, Sandy
Like any other investment, real estate is something that you have to analyze objectively. I think we're all reluctant to sell something at a loss. I know I hate to dump underperforming mutual funds. But as my financial advisor has taught me, you have to consider not only the immediate loss, but also the opportunity cost.
If you have a monthly negative cash flow and there is no anticipated way to raise the value of the property or the cash flow...e.g. raise the rent...you might very well be better off to stop the bleeding. Of course, if that means bringing money that you don't have to the closing table, you're in a very sticky situation.
One way to potentially gain on the rent is to offer to either sell the properties on contract, or lease them with option to buy. If you are willing to take a renter with a less than stellar credit history, you can sometimes set both the rent and the eventual price of the house at higher than prevailing market value to compensate for your risk.
I'd suggest almost any book by Robert G. Allen to learn more about this technique and why it works, or feel free to write me privately for more information. Of course you would have to do your own homework on the risks involved, as I am an expert only in my local area.
Cheri
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