Not sure what I should do. I currently have a property that I have new tenants moving into on October 26. I don't even want this property. I've been forced into renting it out because I can't sell it to a non-investor. I just want to break even on it and I don't think I can even do that. If the property is vacant for more than a month I would have to walk away from it and let foreclose. l looked into short selling but I don't want to be responsible for the difference owed.
I'd ride it out with the tenants and try and secure some back-up investors that might want to buy the house subject to the existing mortgage
Burn it to the ground, collect insurance
Can't afford the prison time on that one @Seth S.
OK, it sounds like you have an underwater property that you're going to rent. What's the rent and what's the P&I part of your mortgage payment? Are you managing it yourself?
Often these situation come down to a choice between taking a big loss right now or taking a slow loss while you hold it.
Is this your residence? If so, you may be able to avoid some of the taxes associated with a short sale. Do you have assets you could use to make up the shortage? If not, then you usually won't be on the hook for the shortage if the lender agrees to a short. If you do, then the lender probably won't agree to the short any way.
But you say you have a tenant moving in. That's going to limit your ability to sell the place. Not impossible. Investors do buy occupied houses. But homeowners (owner occupants) do not. Investors are always going to pay less than a OO. So your maximum selling price will be generated by sprucing it up to get it move in ready and selling to an OO.
Jon Holdman, Flying Phoenix LLC
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welcome to Biggerpockets!
As you can already tell this website is full of some amazing resources and people who want to help. The first step is to post the "details". In this case the details are what you paid for it, what it is worth now, your mortgage, rent, hoa or other expenses. The other key is if you have any major repairs coming do.
The next step is to take a deep breadth. While landlording certainly isn't for everyone it might grow on you. My mother has been an accidental landlord for 25 years. It was a blessing in disguise for her.
So look around here and read up I the resources. Also look in people's signatures at their website. As many of us including myself have websites and blogs full of resources. Mine is all about landlording and self management. You might enjoy it and learn a lot. While we have purposefully entered into landlording, we have very small margins. Therefore we have had to Be very efficient and effective on our management.
Good luck! Remember markets do go back up. So dig into this site and you will find the resources to succeed!
Thank you Jon and Elizabeth. I am the owner. I don't live in at the moment. I just had one tenant move out. I just had a bunch of work done due water damage. Hopefully nothing new will pop up. I owe about $128 it appraised at $122. I don't have any other assets. My networth is around $-200K if that tells you anything about my situation. As of now I am managing it myself with the new tenants coming in. We were hoping to save some money because the fees with the management company were too high. 10% of rent per month and I was taking about a loss of $100 a month. I guess I will just have to grin and bear it for now. Thank you for the advice.
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