Ricechex, being intimately familiar with the ‘hoods in 92105, I’m bearish on the quality of tenants a landlord can ever get (and keep) there. If managing it is a lot of headache and because of the maintenance you are negative year after year (or just barely have a positive cash flow), then I would attempt to dump it. It’s not worth the hassle and life can be short. Also, will your non-resident tenant-in-common get one-half the sales proceeds (if any) even after you’ve done all the work managing the property? This work and headache is worth 10% of the rent each month on the open market. There are other easier, cleaner and more passive ways you can shelter this amount of tax writeoff from taxes (IRA, 201K, etc).
If you haven’t acquired any additional equity in nine years, do not want to ever occupy it yourself and there is little to nothing to split with the tenant-in-common upon sale, I would market it in attempt to get rid of it but for no less than break even after RE sales commissions and closing costs. I don’t see the sales market improving for years to come and it could take MANY years for it to improve in 92105, if ever. Due to the years of “shadow” inventory in better areas, 92105 may even plunge in value further. You have nothing to lose by trying to market it now, pricing it aggressively from the get go and see what happens.
Based upon your post, I don’t see your tenant-in-common wanting to ever occupy it either. (S)he’s probably happy to let you do all the work and rent collection, etc. while they live somewhere else hassle-free. Therefore, they should have no problem signing a listing agreement.
I just wouldn’t manage property myself (where I shared ownership with a tenant-in-common) unless I recieved something for my services (i.e., mgmt. fee/the entire tax writeoff, etc) as it can be a LOT of work.
