Stuck with a money drain property, How to turn it around?

3 Replies

My husband "won" his last marital home in a community property dispute. His ex-wife effectively vandalized it legally before eviction.

We attempted to do some reno on the property to get it rented but after 25k, its about halfway there, and are having trouble getting the rest finished (garbage contractors/garbage property managers/financial drain). We unfortunately are trying to do this 5000 miles away because the military has us in Alaska and its located in Louisiana.

We have discussed selling it as-is and taking a possible loss. But Real Estate agents are few in the Ft. Polk area and don't like to return phone calls if the home value is less than 200k.

Now we are discussing "slum lording" it in attempt to cushion our current monthly loss.

I am looking for creative suggestions on how to turn this around, minimize loss or turn it into passive income.

If renovated and at full rental value it would make passive income, but the fact is its taking far too much TIME because of contractors. (currently 10 months vacant)

We have been dying to get into a 4-plex or more to off-set living costs, but even with our great credit, our debt to income (because of this property) has been screwing us with lenders.

@Allena Anderson McKiness - I am so sorry to hear of this - talk about a stress filled deal. I don't have any military / Fort Polk connections to help down in LA - but that would be what I think you'd try to find first. There just may be a handy young soldier down there on base that wants a side project - that you could get into a deal with where she or he makes a percent of the sales after fixing up?

Now - about Alaska - that's where I am at. I would love to try and help you and your family get into a duplex, triplex, or fourplex if you'd be glad to use me. I am connected a few mortgage lenders here locally that often find creative ways to help people that should qualify - get qualified. Or, and this may be the better bet for you, I often find and can help connect you with a seller of a fourplex or other income property that would do owner financing for 3 or 5 years so you have time to get out of the money-pit and see positive cash flow. Let me know if you'd like any help on the Alaska side of things.