Suggestions on best path under water house- rental too low-trial modification

Tampa, Florida
General Real Estate Investing
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Suggestions on best path under water house- rental too low-trial modification

Hector Chavarria
Member since 2025 · 5 posts · 0 votes

I got a property loan 400k, house value 390k

behind and currently on trial for house modification

rent in the area $2,600 a month 

looking for rental or exit strategy

Trial ends October

current monthly mortgage payment $3,300 v

Estimated new monthly payment after modification trial $3,029 

includes HOA, Tax and Insurance

Any advise will help.

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Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @Hector Chavarria:

I got a property loan 400k, house value 390k

behind and currently on trial for house modification

rent in the area $2,600 a month 

looking for rental or exit strategy

Trial ends October

current monthly mortgage payment $3,300 v

Estimated new monthly payment after modification trial $3,029 

includes HOA, Tax and Insurance

Any advise will help.

That $300 modification is only useful if you have reason to keep the property for 10 years or more. Your new loan for be for 40 years, not 30 years. Otherwise, it is just foolishly throwing good money after bad. It will cost you 8% to 9% to sell at some point.

If you and the family live there, that's one thing. If it's an investment property, no way.
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  • Bryan HartlenPro Member
    Investor · Phoenix, AZ · Member since 2018 · 313 posts · 157 votes
    1y

    Other rental strategies typically have higher returns but require more work and can be location dependent:  short-term (by the day aka AirBnB) and mid-term (less than 12 months targeting traveling nurses and other workforce labor).  You’re in Tampa which could support both depending on the property’s neighborhood.  Renting by the room can also increase returns.  Lastly house-hacking…. You live in the preoperty with roommate(s).

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  • Nick C.
    Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    1y

    Have you explored a short sale? 

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  • Jorge VazquezBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 685 votes
    1y

    Hey Hector, thanks for laying everything out—this is actually a situation where a little creative structuring could still give you a strong exit. Here’s what I’d suggest:
    Option 1: If your loan mod ends with a rate at least two points below the national average, you can sell the home subject-to the existing mortgage. That’s valuable to a buyer because your monthly payment will be way lower than if they got a loan at today’s 7% rates. That payment savings is like getting the home at a $60K+ discount—it’s not about the sale price, it’s about the monthly cost.
    Option 2: If it doesn’t work as a regular rental, you can partner with someone who runs corporate rentals. They’d furnish the place, handle guests, pay your mortgage, and either pay you a flat monthly fee or split profits. This is often done through a sandwich lease. You stay on title, and they do the heavy lifting.
    Option 3: You could also house hack it yourself—live in one part (maybe the garage unit or back area) and rent the rest out. That helps cover the mortgage while you keep control.
    Option 4: Or you can sell the property to another buyer as a house hack opportunity, using terms like a lease option, rental agreement, or wraparound mortgage. That makes the deal appealing to someone who wants to live in it while also generating income.

    These options keep you in control, avoid foreclosure, and potentially create income. Let me know if you want to talk it through or run some quick numbers together.

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  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Hector Chavarria:

    I got a property loan 400k, house value 390k

    behind and currently on trial for house modification

    rent in the area $2,600 a month 

    looking for rental or exit strategy

    Trial ends October

    current monthly mortgage payment $3,300 v

    Estimated new monthly payment after modification trial $3,029 

    includes HOA, Tax and Insurance

    Any advise will help.

    That $300 modification is only useful if you have reason to keep the property for 10 years or more. Your new loan for be for 40 years, not 30 years. Otherwise, it is just foolishly throwing good money after bad. It will cost you 8% to 9% to sell at some point.

    If you and the family live there, that's one thing. If it's an investment property, no way.
    1Reply
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