Creative Solutions for Negative Cash Flow Situation
I'm a first time owner of an investment property. Challenge is that I did not figure in a senior tax exemption as well as homeowner exemption, which made the taxes look deceptively lower.
As it is, with the downturn in real estate in the Chicago area (we've had the property for about two years), in order to get tenants, we've had to go lower on the price, in order to fill the vacancy. We've been fortunate to have good tenants. However, it's becoming cost-prohibitive to hold the property. I've dipped way into savings, and even gone into some debt to cover the cost of taxes on the property.
Am wondering if there are creative options besides selling the place at a loss.
What I've already considered: rent to own (making for a higher rental price)
Using a self directed IRA to somehow tap into extra funds. (legally)
Is hard money a worthwile option?
Would it be realistic to approach a seasoned investor who has a lot of extra funds and ask him to invest some money (which would cover holding costs until the future sale of the property), and count him/her in as a part-owner?
Right now, we are considering the following: rent w/ option to own, rent (letting the renter we will need to be showing the house, and that this will be a month by month rental situation, until the house is sold), sell immediately (but the average wait time till sale seems to be 3-6 months)
If there's anything I have not thought of, please let me know! I am in problem solving mode....I don't want to amputate my arm (sell the home at a huge loss) if I can put on a few tourniquets to make it only a small bleed :(