How to get out of a HM loan where you owe more than what could the property sell for?
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.
Do a realistic income and expense projection as if the property was already rehabbed and fully rented at market rents. Then look for a partner that shares your long term hold goals and make it happen. Good luck.