What to do when a property can't sell or rent? Stuck forever?

11 Replies

I have a crazy question that I wasn't able to find an answer for. What are the options if you have a rental property that is paid in full, but no longer cash flows and no one wants to buy it. For example, lets say you purchased a property in a rural area and the only job provider left the town. You no longer can get tenants nor would anyone want to buy from you. However, you no longer want to own the property, incur property taxes, maintain utilities, etc... What do you do?

@Sam P. Why did you buy in the first place? Sounds like you're about ready to pay some stupid tax...

I was thinking worst case scenario.  If something really goes horribly wrong, is it possible to just walk out and your other assets are protected or are you stuck paying taxes (and fines) for the rest of your life.

Sell for undervalue. Every property has a valuation, trust me if you reduce the price low enough someone will buy it unless there is something fundamentally wrong with it in which case you donate it

You mentioned that it doesn't cash flow even though it's paid off???

thx,

Chris

Sell it cheap. Donate it. Or let it go in tax sale. I don’t know how letting it go would affect your credit rating. Interesting question.

Originally posted by @Sam P. :

I was thinking worst case scenario.  If something really goes horribly wrong, is it possible to just walk out and your other assets are protected or are you stuck paying taxes (and fines) for the rest of your life.

 You can always donate it. We have had people donate property that they couldn't sell to our utility company. They get a fair market value tax deduction and rid themselves of something that has no value to them any more. 

Sounds like if you really want to get rid of it, someone is willing to take it.  Would this apply even to barren land out in the boonies?

This is just speculation questioning.  If I were to invest out in the boonies and if something ever happened to the market (such as the only job source leaving town) or the some sort of catastrophic damage that happened to the house that the insurance didn't cover and basically render the land to the point that no one wants it, what would be the exit options.

Light a match. J/K. I would try your approach. There needs to be a different angle that has not been explored in both the selling and renting fields. Between both avenues, there has to be something that can be changed up in your process to deal with it one way or the other.

Brandon Ingegneri, Contractor in RI (#41301)
401-301-5528

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