Advice on a rental property that has gone sour
Hello all. I've got a rental property that has caused me some headaches over the years and I'd like to brainstorm some ways to change the situation I'm in. To make a long story short here are the details: I purchased an attached 2 story townhouse in Western Massachusetts where I was working and living in 2006. At the time I got it for a deal about $30k under what it appraised for. Then I moved out of the area in 2008 right before the market crashed. Crash happens and I'm lucky enough to rent it out in 2009 (but rent doesn't cover costs) and have been renting it out at a loss ever since. Rent is set as high as the market will take (if I raise it more my tenant will walk) and I've talked with several banks about refinancing, but that's a no go since they only will look at a refi of 75%. The property is probably at roughly what I paid for it back in 2006 and still rented, I don't know exactly how much because there are no comps in the area that have really sold. I'm negatively geared both before and after taxes. I've got a horrible interest rate and mortgage that no one will go near, and I don't have $40k to put into the house to get me down enough to refinance it. It's classified as an investment property now, so even though it was eligible for HARP refinance, no bank will touch it since it's an "investment property" now.There's a similar unit on the market that isn't selling, so I'm looking for all options that don't include selling (obviously if I could I would). Thoughts anyone?