Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
6y
@Matthew Nicholson. How did this happen exactly? How long have you held it?
Is the current HML interest only? If it is you're paying ~ 2000 a month in interest. At that rate your break even is in 17.5 months if you sell for 400k and that's not including closing costs.
If you sell with a realtor and assuming 6 percent fees there, your break even is in 6 months..
You need to refinance out of the hard money and bridge loans.
Do that, get the investors out and all this bad debt out. Lock-in low interest rate long term debt. Then rent it out and sell it when this blows over.
Anything else means you’ll likely take a bath on the sale right now.
Medford, OR · Member since 2019 · 9 posts · 1 vote
6y
@Caleb Heimsoth Thanks for your response!
I purchased it with a few other investors June last year, and everything went wrong with the rehab schedule. It is HML, the monthly interest-only is $2050.
Including 8% closing costs (realtor 5% + title/escrow 3%), my breakeven today is sale @ 362k. I am not bankable, no w-2, and my other partners aren't bankable either. We all just had cash to make it work, not anticipating everyone being told to stay home.
Medford, OR · Member since 2019 · 9 posts · 1 vote
5y
Haven't been on here for a while, but here's how it shook out:
HML gave me an extension, I switched RE Agents, found a buyer, Angel Investor came in with the cash to finish the project and everyone got their money back (except me, I took the L as punishment so I would never forget my mistakes).