Buying & Selling Real Estate Discussion

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Steve Sidie
  • Southfield, MI
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How to get out of a HM loan where you owe more than what could the property sell for?

Steve Sidie
  • Southfield, MI
Posted Apr 24 2023, 19:41

Hello BP Community,

I have a quick question and would like to get views from other people.

I have a property that I purchased with HM loan a couple years ago that needed rehab. My strategy was to BRRRR however it has bee a rough ride since I purchased it. I have ran into more issues than expected. I rehabbed 3/8 units throughout this time and even got overcharged. 5 units remained to be rehabbed.

Despite the fact that this property has a good income potential when fully rehabbed today I owe more than it might actually sell for. I have lost money on this and the only way for me to make that loss back up would be to hold it long term (as I initially wanted) but I can't get a loan right now as it is. Hence I am also open to sell it and move on.

So what would you do in my situation? Any suggestions, idea, advices would be welcome.

Thanks for reading.

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