Updated 4 months ago on . Most recent reply
Hard to Pay My DSCR Mortgage
In Ohio
I have a duplex - my only rental property. Both tenants were there when I purchased it in March, 2024. Both renewed their lease with me. The lower level tenant was due for lease end Feb 2026. He did a midnight move on July 3rd. I have painted, fixed up, new ceiling fans, window dressings, etc. and it is move in ready. Can’t find a tenant that qualifies: 3 times the rent in monthly income, pass credit check and criminal background check.
The upper unit is not generating enough to pay the mortgage, insurance, taxes and it is COSTING me $550 a month to own this property. Not good. I’ve listed it for sale with a realtor and considering not paying the mortgage anymore.
Thoughts? Anyone ever been in this predicament?
Thank you,
Lisa
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#3 Private Lending & Conventional Mortgage Advice Contributor
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- Charleston, SC
You need to do two things asap: figure out why it's not renting, and determine a no BS figure for what you will lose if you sell it. Being that you purchase it a little over a year ago, you will likely take a big hit on selling now. That being said, this may be the only option if there is something fundamentally wrong with the rental scenario.
If you stop paying the mortgage, it will wreck your credit and you will load up on late fees, legal fees, and default interest.
If renting out the second unit is still plausible to make it work, this is likely your best path forward.