Need help!!! rent or try to sell?
Hey Guys,
Have a bit of a dilemma i'm hoping i can get your input on.
I bought a townhouse property to flip, but do to a lawsuit the HOA brought against the builder most lenders will not underwrite a mortgage until the lawsuit it over which is probably about a year away. No FHA and any buyers would have to get a non-conforming loan with 25% down. I have owned the property for six months now.
I received an offer to rent and need help deciding on what to do. Below are all the numbers.
Offer to rent is $1800 per month + all utilities. Renters are two teachers and their three small children. No pets and non-smokers.
Property Info:
3 Bed
2.5 Bath
Attached Garage
1976 SF
Built in 2006 (has been vacant since 2011)
Property is in excellent condition
HOA responsible for all exterior maintenance and repairs
In a well cared for 300 unit development
Property numbers:
Into the property for $127k (currently borrowed at 5%)
Current Property Value = $165-170k ( the property will be worth more as soon as the lawsuit is complete)
Annual Property taxes = $5400
Annual HOA= $2400
Insurance = $800
What should i do? I didn't purchase this as a buy and hold, but have had it on the market for 6 months and have had two sales fall apart because of this lawsuit. There is nothing wrong with the property as any defects were already addressed by the HOA.
Thank you in advance for all your feedback.