I thought buying a home would be a financial win. 18 months in, it’s been the worst decision of my life. Should I cut my losses?

I bought my first home in October 2024. I was so proud, especially since I’m a single woman. I thought I was finally building wealth instead of “throwing money away on rent.”

Now about 18 months later and I have never been more broke or stressed in my adult life.

Here’s the problem:

1) I drained most of my very healthy savings on the down payment (I wanted to give a big downpayment because that’s what the “gurus” recommended) and closing costs. The place is nice in a sought after area and was fully renovated when purchased, and at the time the sale price seemed to be a steal.

2) The week I closed, my car (which had been limping along for months) finally died. Every car I’d owned before, I’d paid cash for. This time I had nothing left. So now I have my first-ever car note. No public transportation where I live, so it wasn’t optional.

3) I rent out the place I bought for $4,000/month, which should cover the mortgage ($2300 per month) as well as home insurance (around $300 per month) and property tax (around $300 per year). I’m separately renting my actual living situation for $3,500/month including utilities.

4) After a full year of being a landlord, I’ve netted a LOSS. Not break-even. A loss. Because things just stop working. AC unit died. Major plumbing repairs. And right now? Another plumbing emergency that’s going to run me around $1k out of pocket this month.

Every single month, I’m pinching pennies. I wake up scared to check my phone in case it’s the tenant calling about something else broken. Will I have to buy a new washing machine this month? Who knows??? It’s a nightmare.

Before I bought this place, I traveled at least 3 times a year. I had a savings cushion. I felt free. Now anytime I plan to do something to enjoy myself I feel threatened. My credit cards are ALL run up ($14k credit card debt) and I have no plan to pay it off. The financial havoc this home purchase has unleashed in my life is one I never thought possible. I essentially feel trapped by what should’ve been my “asset.”

I checked what it would cost me to sell. Between the prepayment penalty on my mortgage (6 months interest because I’m under 3 years in), realtor commissions, taxes, and legal fees, I’d likely walk away losing my entire down payment and then some. So I’m stuck holding it for at least another 1-2 years to even HOPE to break even on an exit.

I keep seeing posts about people building wealth through real estate and I genuinely don’t understand how. What am I doing wrong? Or is this just what homeownership actually is and nobody talks about it?

Anyone else been here? Did it get better, or did you cut your losses? I’m so emotionally and financially exhausted.