First-time homeowner needs advice

I'm a first-time homeowner. I've been in this home for about 2.5 years. It's a townhouse in a community of 10 townhomes, so there is an HOA. The HOA fees are low, so they don't cover much. I had an inspection and I knew I had some bigger projects in the coming years, but most of the stuff that was immediate was pretty small. Or so it seemed. In the time that I've been here, I've spent nearly $25K on various repairs. We haven't even gotten to the major repairs that are coming soon (HVAC, roof). I just saw that a leak that was supposedly repaired less than a year ago is leaking again. The front entry door that was replaced a year ago, is coming off the hinge already. The property taxes just doubled. Even after paying a shortage of $5000, my mortgage still went up by $300 a month. I'm just wondering at what point do you cut your losses and sell? I haven't lived here long enough to build up the equity to replace the $25K I've already invested, so it would be lost, but I'm afraid that I can't keep up with these costs.

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MarkPaul · 26-30, M

It's time (possibly past the time) to unload the property.

blindbob · 41-45

@MarkPaul Unloading before two years would result in Capital Gains taxes, no?

MarkPaul · 26-30, M

@blindbob If the property is as you describe and not exaggerating, you most likely will be selling it at a loss and you will gain a tax advantage. Still a monetary loss though, but from your description, keeping the property is going to become a money drain.

blindbob · 41-45

@MarkPaul As the other commenter mentioned, I'm worried about being upside down on the mortgage in addition to the lost investment.

Gibbon · 70-79, M

@blindbob you would not pay capital gains unless you made at least a $250 grand profit. After the sale based on your original purchase price

MarkPaul · 26-30, M

@blindbob The cash it's going to take to fix the things wrong with the property is going to make being upside down on the mortgage and the lost investment incidental. Throwing money at a bad investment is a known way to keep losing money. Get out while you can. An alternative is to make minor repairs to limit the loss you will experience on a sale so that you can sell the property. Staying put out of fear of the alternative is a classic way to drain your pockets.