Hard to Pay My DSCR Mortgage
Member since 2024 · 12 posts · 9 votes
Hard to Pay My DSCR Mortgage
Most Popular Reply
Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
1yYou 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.
29 Replies
- 1yJonathan Taylor SmithBusiness MemberRental Property Investor · Durham / Raleigh (Triangle), NC · Member since 2015 · 841 posts · 803 votes
@Lisa Holden - I would certainly NOT stop paying the mortgage outright... But do contact your lender and find out what hardship options they may offer and learn if you must be behind on the payments to qualify. How confident is your Realtor in being able to sell the property at or near the listed price - and will that sale result in a NET gain for you or just lock in a loss?
If you were to NOT sell and get the other unit rented, would that potentially be a better outcome for you both now and in years to come? If so, you might just need to lower your rental criteria. I recently lowered my income required from 3x to 2x. I also do not have a minimum credit score requirement - instead using the score to in-part determine the security deposit requirement at 1x, 1.5x or 2x rent. I care more about liens, judgements and collections than I do about a low credit scores for other reasons - which is often related to medical bills or student loans.
Blue Chariot Realty & Management4.915 Reviews- Member since 2024 · 12 posts · 9 votes1yThanks so much for your input. I put $42k down on the property - I may have gone too nice of a property for my first time purchase. This is my LAST 😂. Plus, the upstairs tenant is sometimes late with her rent. My reason for high criteria of tenants. She was there when I bought it so I wasn’t knowledgeable on either tenant’s background, income, etc. It’s just too stressful. I’m sure it will sell so I can get my initial investment back. I’m semi-retired from teaching and thought this would work for me (I have a few friends that have rentals and love it years). Not so for me. I can’t keep dumping money in.
Quote from @Jonathan Taylor Smith:
@Lisa Holden - I would certainly NOT stop paying the mortgage outright... But do contact your lender and find out what hardship options they may offer and learn if you must be behind on the payments to qualify. How confident is your Realtor in being able to sell the property at or near the listed price - and will that sale result in a NET gain for you or just lock in a loss?
If you were to NOT sell and get the other unit rented, would that potentially be a better outcome for you both now and in years to come? If so, you might just need to lower your rental criteria. I recently lowered my income required from 3x to 2x. I also do not have a minimum credit score requirement - instead using the score to in-part determine the security deposit requirement at 1x, 1.5x or 2x rent. I care more about liens, judgements and collections than I do about a low credit scores for other reasons - which is often related to medical bills or student loans.
thanks so much, again for your advice.
Lisa - Member since 2024 · 12 posts · 9 votes1y
Quote from @Jonathan Taylor Smith:
@Lisa Holden - I would certainly NOT stop paying the mortgage outright... But do contact your lender and find out what hardship options they may offer and learn if you must be behind on the payments to qualify. How confident is your Realtor in being able to sell the property at or near the listed price - and will that sale result in a NET gain for you or just lock in a loss?
If you were to NOT sell and get the other unit rented, would that potentially be a better outcome for you both now and in years to come? If so, you might just need to lower your rental criteria. I recently lowered my income required from 3x to 2x. I also do not have a minimum credit score requirement - instead using the score to in-part determine the security deposit requirement at 1x, 1.5x or 2x rent. I care more about liens, judgements and collections than I do about a low credit scores for other reasons - which is often related to medical bills or student loans.
Thank you for your input. It should sell for at least what I paid for it allowing me to recoup my down payment funds. 17 mortgage payments I’ve made would be a loss. Perhaps I do need to lower my tenant criteria. I just don’t want to wait on my money and a bunch of excuses for rent not paid.
I see why the standard is 3 times the rent in income. Say it’s 2 times in income:Income: 2,000
Rent: $1,000
Gas Heat, Electricity, $300
Food, $400
Car Payment and insurance $500
Then I see how I’m the last to get paid.
This isn’t factoring in cell phone bills, eating out, entertainment.
I regret I ever did this. Praying it will all work out in my favor. I have a good realtor. The unit is still listed for rent also. It is listed @$1,100 which is right in line and possibly a bit lower price for the area, the size, and amenities.
thanks again,
Lisa - Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes1y
Quote from @Lisa Holden:
Quote from @Jonathan Taylor Smith:
@Lisa Holden - I would certainly NOT stop paying the mortgage outright... But do contact your lender and find out what hardship options they may offer and learn if you must be behind on the payments to qualify. How confident is your Realtor in being able to sell the property at or near the listed price - and will that sale result in a NET gain for you or just lock in a loss?
If you were to NOT sell and get the other unit rented, would that potentially be a better outcome for you both now and in years to come? If so, you might just need to lower your rental criteria. I recently lowered my income required from 3x to 2x. I also do not have a minimum credit score requirement - instead using the score to in-part determine the security deposit requirement at 1x, 1.5x or 2x rent. I care more about liens, judgements and collections than I do about a low credit scores for other reasons - which is often related to medical bills or student loans.
Thank you for your input. It should sell for at least what I paid for it allowing me to recoup my down payment funds. 17 mortgage payments I’ve made would be a loss. Perhaps I do need to lower my tenant criteria. I just don’t want to wait on my money and a bunch of excuses for rent not paid.
I see why the standard is 3 times the rent in income. Say it’s 2 times in income:Income: 2,000
Rent: $1,000
Gas Heat, Electricity, $300
Food, $400
Car Payment and insurance $500
Then I see how I’m the last to get paid.
This isn’t factoring in cell phone bills, eating out, entertainment.
I regret I ever did this. Praying it will all work out in my favor. I have a good realtor. The unit is still listed for rent also. It is listed @$1,100 which is right in line and possibly a bit lower price for the area, the size, and amenities.
thanks again,
LisaI would consider hiring a professional property manager to help find a tenant. Either the asking rent is too high or the property is not being properly marketed. I would not lower the requirements if this was me - a bad tenant is not better than no tenant.
If you sell, you will pay 5-6% or more in transaction costs, and you likely have a prepayment penalty (PPP) on the DSCR loan, which could easily add another 1-3% to the exit costs. This is all assuming it would sell for what you paid for it without requiring any repairs or updates to be listed. It will easily cost you 5-10% of the current value to sell it, which it seems like this property is probably worth around $200k, so you could lose another $10k+ in selling it.
- Member since 2024 · 12 posts · 9 votes1y
Quote from @Patrick Roberts:
Quote from @Lisa Holden:
Quote from @Jonathan Taylor Smith:
@Lisa Holden - I would certainly NOT stop paying the mortgage outright... But do contact your lender and find out what hardship options they may offer and learn if you must be behind on the payments to qualify. How confident is your Realtor in being able to sell the property at or near the listed price - and will that sale result in a NET gain for you or just lock in a loss?
If you were to NOT sell and get the other unit rented, would that potentially be a better outcome for you both now and in years to come? If so, you might just need to lower your rental criteria. I recently lowered my income required from 3x to 2x. I also do not have a minimum credit score requirement - instead using the score to in-part determine the security deposit requirement at 1x, 1.5x or 2x rent. I care more about liens, judgements and collections than I do about a low credit scores for other reasons - which is often related to medical bills or student loans.
Thank you for your input. It should sell for at least what I paid for it allowing me to recoup my down payment funds. 17 mortgage payments I’ve made would be a loss. Perhaps I do need to lower my tenant criteria. I just don’t want to wait on my money and a bunch of excuses for rent not paid.
I see why the standard is 3 times the rent in income. Say it’s 2 times in income:Income: 2,000
Rent: $1,000
Gas Heat, Electricity, $300
Food, $400
Car Payment and insurance $500
Then I see how I’m the last to get paid.
This isn’t factoring in cell phone bills, eating out, entertainment.
I regret I ever did this. Praying it will all work out in my favor. I have a good realtor. The unit is still listed for rent also. It is listed @$1,100 which is right in line and possibly a bit lower price for the area, the size, and amenities.
thanks again,
LisaI would consider hiring a professional property manager to help find a tenant. Either the asking rent is too high or the property is not being properly marketed. I would not lower the requirements if this was me - a bad tenant is not better than no tenant.
If you sell, you will pay 5-6% or more in transaction costs, and you likely have a prepayment penalty (PPP) on the DSCR loan, which could easily add another 1-3% to the exit costs. This is all assuming it would sell for what you paid for it without requiring any repairs or updates to be listed. It will easily cost you 5-10% of the current value to sell it, which it seems like this property is probably worth around $200k, so you could lose another $10k+ in selling it.
- Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes1y
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.
- Member since 2024 · 12 posts · 9 votes1y
My realtor is going to connect me with a property manager.
I fortunately do NOT have a prepayment penalty on the DSCR.
I will keep you all posted in this thread. I appreciate all of the input and experience expressed.
Lisa - 1yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Lisa Holden:
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
Not paying the mortgage is going to kill your credit. Even having a 30 day late really impacts your score and will make it extremely difficult to qualify for future financing. It can be done, but you won't be getting the best terms.
It will also impact you on future credit transactions so be mindful of this as well.
Does your lender allow a loan assumption? Maybe you can pitch this here on BP or other investing sites as an assumable mortgage. I think you might be better off selling to break even and call it a loss rather than putting your personal credit at jeopardy.
LuxePrivate Investments LLC 570 Reviews - Member since 2024 · 12 posts · 9 votes1y
Erik,
I have a 780 credit score and don’t want to mess it up. I’m going to struggle to keep paying it and hope something gives ASAP.
- 1yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
@Lisa Holden too much to cover here in a post, so DM so we can set up a chat!
Logical Property Management4.9464 Reviews - 1yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Talk to your friends who have rentals and have them walk the vacant unit with you and look over your listing. Is the problem you aren't getting showings or that the showings are translating to people applying? I get the criteria of 3x rent as income, but that also depends on the rent. A $500 rental-not a problem, but a $2000 rental-maybe not. It comes down to how much people need for their housing and other expenses and that isn't a percentage-that is a dollar amount. Eg monthly phone bill is the same if you live in a $500 or $2000 a month place.
- Member since 2024 · 12 posts · 9 votes1yHi Theresa,
Quote from @Theresa Harris:
Talk to your friends who have rentals and have them walk the vacant unit with you and look over your listing. Is the problem you aren't getting showings or that the showings are translating to people applying? I get the criteria of 3x rent as income, but that also depends on the rent. A $500 rental-not a problem, but a $2000 rental-maybe not. It comes down to how much people need for their housing and other expenses and that isn't a percentage-that is a dollar amount. Eg monthly phone bill is the same if you live in a $500 or $2000 a month place.
I have not even been showing it to people that cannot meet the criteria. Why waste my time and theirs? My rental is priced at $1,100 per month which I feel from research is very comparable for the area. My upstairs tenant pays $1,175. I've lowered the income requirement to $2,500 per month and not specified a credit score number (as suggested from another commenter here).
I have a meeting with a local property manager on Tuesday. Meanwhile, it is for sale. https://www.realtor.com/realestateandhomes-detail/M445544043...
- 1ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes
Quote from @Lisa Holden:
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
What do you know about the area surrounding it? Are you investing Out of state with or without knowledge of the area?
Sam McCormack Realtor- Member since 2024 · 12 posts · 9 votes1y
Quote from @Sam McCormack:
Quote from @Lisa Holden:
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
What do you know about the area surrounding it? Are you investing Out of state with or without knowledge of the area?
I live 1/2 mile from the property. I am confident it is priced within market area pricing. I have a friend that lives within walking distance and pays the same for a 2 bedroom- mine is 3 bedroom 1700 square feet.
- 1ySam McCormackBusiness MemberReal Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 834 votes
Quote from @Lisa Holden:
Quote from @Sam McCormack:
Quote from @Lisa Holden:
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
What do you know about the area surrounding it? Are you investing Out of state with or without knowledge of the area?
I live 1/2 mile from the property. I am confident it is priced within market area pricing. I have a friend that lives within walking distance and pays the same for a 2 bedroom- mine is 3 bedroom 1700 square feet.
Just the cost of doing business then. You'll have vacancy and you'll be fine
Sam McCormack Realtor
- 1yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
Not paying your mortgage should never be an option unless you literally cannot do it. If that's the case, you need to call your lender and ask they about options. The lender took a risk on you and sometimes investments work out great, sometimes they don't. That's part of the deal.
The simple answer is that your rent is too highe for the property. That might be location, it might be condition and it might be seasonal, but lowering the price will always be a step in the right direction.
Secondly- is this a C property? Higher quality properties don't have tenants that disappear in the middle of the night and you don't have to deal with tons of unqualified applicants. Cash on cash might not be as good right away, but over time those properties will perform much better.
Finally- cycle your leases so that they renew April through June. If your property manager doesn't automatically do this, you need to have a conversation with them.
Best of luck! - Real Estate Agent · Member since 2023 · 831 posts · 577 votes1y
"Can’t find a tenant that qualifies: 3 times the rent in monthly income, pass credit check and criminal background check"
^^ Not knowing where and what the condition of the unit is like, this is the issue here. 3x rent + credit with a clean background knocks out a big chunk of renter in most ohio markets, espically if rent is higher than the area avg.Just sounds like your tenant criteria is too tight or there's a potential market mismatch.
I would reach out and work with an experienced property manager asap so they can set some expectations here. - 1yRob HowardPro MemberKnoxville TN, USA · Member since 2023 · 62 posts · 42 votes
Have you owned it long enough to to refi at a lower payment? If it's eligible - look at turning it into a MTR or STR so at least something is coming in until you have a better pool of candidates.
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes1y
This is part of being a landlord. You felt you would never have a vacancy? You should not go into it unless you know you can float that note for a certain amount of time. It's all part of the long-range strategy. This can happen anytime. My goodness, what would you do if they both were vacant? Have you determined why the tenant bounced on you at midnight? (i.e. lost job, place sucks, weren't comfortable with you being the landlord?) If you or the building is the problem, you may lose the other tenant soon. Do you understand why no one qualifies for the rent? (shytty neighborhood, crime, rent too high?). If you have a low-end community, in many cases you will get desperate or bottom feeding tenants who live a transient life. People who tend to have strong credit and credentials can go elsewhere. Its just so many questions to answer but if you remain in this biz, you have to understand all these dynamics. No matter what the case, you have to be able to survive vacancies. If you can't, you can't be in this business.
Best of luck, but there are so many things you are going to have to figure out. If you don't, no matter what investment you get, eventually you will be considering selling or a default.
- Member since 2024 · 12 posts · 9 votes1yHe moved because of baby-mama drama, girlfriend, etc. He is a veteran and told me, “You will always have your rent on time and I plan to stay here for a long time.” He was the one who always paid on time, never late. He had a deal to mow the grass and shovel for $100 per month off rent. He stopped doing that a month before he left and told me the lawn mower was broken. It wasn’t because my new lawn guy started it right up. Life happened to him and he left. Looking at his records (public online) he had DUIs, trespassing and harassment of a girlfriend/ex wife. These people were there when I bought it and renewed their leases. I was not privy to any background knowledge of either tenant. He also stole my washer and dryer from the basement. I have filed suit in small claims court.
Quote from @Mark Cruse:
This is part of being a landlord. You felt you would never have a vacancy? You should not go into it unless you know you can float that note for a certain amount of time. It's all part of the long-range strategy. This can happen anytime. My goodness, what would you do if they both were vacant? Have you determined why the tenant bounced on you at midnight? (i.e. lost job, place sucks, weren't comfortable with you being the landlord?) If you or the building is the problem, you may lose the other tenant soon. Do you understand why no one qualifies for the rent? (shytty neighborhood, crime, rent too high?). If you have a low-end community, in many cases you will get desperate or bottom feeding tenants who live a transient life. People who tend to have strong credit and credentials can go elsewhere. Its just so many questions to answer but if you remain in this biz, you have to understand all these dynamics. No matter what the case, you have to be able to survive vacancies. If you can't, you can't be in this business.
Best of luck, but there are so many things you are going to have to figure out. If you don't, no matter what investment you get, eventually you will be considering selling or a default.
The upstairs tenant is paying more than I’m asking for the downstairs that I’m trying to rent. He didn’t pay July (left July 3rd), so 3 months I’ve been floating the balance. I took all of July and painted everything, cleaned, installed new ceiling fans (all work I can and did do myself). It’s a very nice neighborhood so that is not the problem.
I’m done with this biz. Glad it works for so many. It was something I always wanted to try. Tried it and I’m done. - Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes1y
Quote from @Lisa Holden:
He moved because of baby-mama drama, girlfriend, etc. He is a veteran and told me, “You will always have your rent on time and I plan to stay here for a long time.” He was the one who always paid on time, never late. He had a deal to mow the grass and shovel for $100 per month off rent. He stopped doing that a month before he left and told me the lawn mower was broken. It wasn’t because my new lawn guy started it right up. Life happened to him and he left. Looking at his records (public online) he had DUIs, trespassing and harassment of a girlfriend/ex wife. These people were there when I bought it and renewed their leases. I was not privy to any background knowledge of either tenant. He also stole my washer and dryer from the basement. I have filed suit in small claims court.Quote from @Mark Cruse:
This is part of being a landlord. You felt you would never have a vacancy? You should not go into it unless you know you can float that note for a certain amount of time. It's all part of the long-range strategy. This can happen anytime. My goodness, what would you do if they both were vacant? Have you determined why the tenant bounced on you at midnight? (i.e. lost job, place sucks, weren't comfortable with you being the landlord?) If you or the building is the problem, you may lose the other tenant soon. Do you understand why no one qualifies for the rent? (shytty neighborhood, crime, rent too high?). If you have a low-end community, in many cases you will get desperate or bottom feeding tenants who live a transient life. People who tend to have strong credit and credentials can go elsewhere. Its just so many questions to answer but if you remain in this biz, you have to understand all these dynamics. No matter what the case, you have to be able to survive vacancies. If you can't, you can't be in this business.
Best of luck, but there are so many things you are going to have to figure out. If you don't, no matter what investment you get, eventually you will be considering selling or a default.
The upstairs tenant is paying more than I’m asking for the downstairs that I’m trying to rent. He didn’t pay July (left July 3rd), so 3 months I’ve been floating the balance. I took all of July and painted everything, cleaned, installed new ceiling fans (all work I can and did do myself). It’s a very nice neighborhood so that is not the problem.
I’m done with this biz. Glad it works for so many. It was something I always wanted to try. Tried it and I’m done.Sorry this happened. All I can say is this is normal landlord stuff. It happens. The longer you stay in, much much more will happen. I have been in the game close to 20 years and can give you hundreds of scenarios. The point is, to be in the game you must know how to mitigate bad situations. I have a project management background so that helps as well. There are ways out of this. Sometimes things take longer to rent. Maybe you need to advertise better. Maybe it's just a waiting game. I have one where I have been floating the note for over 5 months. The downstairs section 8 pays well so it's not a big deal. I have tons of people trying to get in there all the time, but it must be the right person. Most don't meet my credit criteria either. Its certain characteristics of this neighborhood that makes me understand. Still, I hold out for the great, long-term tenant. This is how you win. However, you said you were tired and done. If this one situation tires you out, I must emphatically insist, this is not the business for you. Its headaches to it, but it's my passion so it's no biggie. I can handle it. If it really stresses you and you are not down for the building of wealth over a long-sustained period, it's best to move on to other forms of investing. Posting a link to the advertisement of the property may help others give you insight.
Good Luck. I want you to win.
- Member since 2024 · 12 posts · 9 votes1y
Hey Mark, thanks so much! I have 2 very good friends that have been in the game for years and were a big influence on me to realize this longtime dream. For me, it’s more like a nightmare 😂. I’m so happy that it has worked for you for a long time. I truly appreciate your time and well wishes.
Lisa - 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Lisa Holden:
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
Hey Lisa, sorry to hear you’re going through this—it can be stressful when a rental isn’t covering itself. First thing I’d say is don’t stop paying the mortgage because the hit to your credit and future borrowing power would be really tough to bounce back from. Since you’ve already listed with a realtor, that’s a solid move if you’re ready to walk away, but if you’d like to keep it as an investment, it might be worth looking at whether your screening criteria are too tight for the area or if the rent is a bit above what the market supports—sometimes adjusting those just slightly can get a qualified tenant in faster. Another option is considering Section 8 or local housing programs that often cover rent directly and open up your tenant pool. Long term, Ohio is still a strong rental market, especially in places like Columbus where demand is high and properties in the $120–180K range can hit the 1% rule and cash flow, so you’re not wrong for wanting to hold real estate here—it’s just that this particular duplex might not be the right one for your strategy. Whatever you decide, the key is to protect your credit and try to minimize monthly losses while you transition. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9122 Reviews - 1yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Lisa Holden:
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
I have never seen someone publicly post that they are considering not paying the mortgage before. I am interested to see if this starts to happen more and more. Also please keep us update on the situation
- Rental Property Investor · NYC · Member since 2024 · 52 posts · 17 votes10mo
Lisa, tough spot...
Vacancy bleeds you dry and the tenant pool right now is rough - a lot of people who want to rent can't clear basic screening. You're not alone in this. Before you stop paying or sell at a loss, one option worth considering: instead of searching for a traditional tenant, lease the vacant unit to a professional operator who runs it as a furnished rental. Someone already mentioned going the MTR or STR route. Operators already come with verified income from other properties in their portfolio. They sign longer leases because they invest their own money furnishing the unit, and treat it like a business asset. Then they're incentivized to renew because they've already built the business around your property. Basically a win-win relationship where the property is kept in the best condition. Rent is always on time because their most important relationship is with you.
Ohio is a solid market for this and duplexes can work well. Might be worth exploring before you take a credit hit or sell underwater. I work with landlords and operators in this space - happy to answer questions if you want to learn more.
What's the latest in the saga? Would love to see you keep the property and have a stress free relationship with your tenants.- Member since 2024 · 12 posts · 9 votes10moQuote from @Lucas De Carvalho:
Lisa, tough spot...
Vacancy bleeds you dry and the tenant pool right now is rough - a lot of people who want to rent can't clear basic screening. You're not alone in this. Before you stop paying or sell at a loss, one option worth considering: instead of searching for a traditional tenant, lease the vacant unit to a professional operator who runs it as a furnished rental. Someone already mentioned going the MTR or STR route. Operators already come with verified income from other properties in their portfolio. They sign longer leases because they invest their own money furnishing the unit, and treat it like a business asset. Then they're incentivized to renew because they've already built the business around your property. Basically a win-win relationship where the property is kept in the best condition. Rent is always on time because their most important relationship is with you.
Ohio is a solid market for this and duplexes can work well. Might be worth exploring before you take a credit hit or sell underwater. I work with landlords and operators in this space - happy to answer questions if you want to learn more.
What's the latest in the saga? Would love to see you keep the property and have a stress free relationship with your tenants.UPDATE: I sold the property in early October. A cash buyer came along and bought it for $224K. I paid $218K and only owned it for 18 months. So yes, I was underwater about $12K with what I put in for down payment, expenses, a few minor repairs.
You’ve heard that old saying about boat owners: The happiest day is when they buy it, and then the next happiest is the day they sell it.
For me, I would put “rental property” in there as well. I’m so glad to be done with that stress.
It was something I always wanted to do. I’m almost 64 y/o - I did it, I’m done, can’t say I never gave it a go.
Life goes on.
appreciate the support here.
Lisa
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes10mo
Quote from @Lisa Holden:
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
Can you share an update?
7e investments53 Reviews- Member since 2024 · 12 posts · 9 votes10mo
Quote from @Chris Seveney:
Quote from @Lisa Holden:
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
Can you share an update?
This is the update I shared above
UPDATE: I sold the property in early October. A cash buyer came along and bought it for $224K. I paid $218K and only owned it for 18 months. So yes, I was underwater about $12K with what I put in for down payment, expenses, a few minor repairs.
You’ve heard that old saying about boat owners: The happiest day is when they buy it, and then the next happiest is the day they sell it.
For me, I would put “rental property” in there as well. I’m so glad to be done with that stress.
It was something I always wanted to do. I’m almost 64 y/o - I did it, I’m done, can’t say I never gave it a go.
Life goes on.
appreciate the support here.
Lisa
- 10moAdam MaddoxBusiness MemberChino Hills, CA · Member since 2020 · 7 posts · 1 vote
Lisa, I’ve seen this exact scenario play out, and it’s incredibly frustrating when one vacancy throws the entire deal off balance.
When you're working with a small multifamily and a DSCR loan, things can feel urgent fast. But urgency doesn't always mean the situation is broken. In many Ohio markets, leasing slows depending on the season and weather, and even solid units can take longer to fill despite being priced correctly.
Rather than making a permanent decision under pressure, it helps to distinguish between a short-term cash-flow squeeze and a property that truly doesn’t work. If the unit presents well, the rent is in line with local comps, and your screening standards match the market, time and visibility may resolve the issue without forcing concessions you’re uncomfortable with.
Selling is still on the table, but short ownership periods tend to be costly once commissions and closing expenses are added up. Knowing what that number looks like is important, but it’s best used as context—not a trigger.
One path that rarely improves the outcome is intentionally falling behind on the mortgage. That usually compounds the problem quickly and reduces flexibility when options matter most.
If there’s a reasonable chance the second unit leases as demand improves, holding steady for a bit may protect more upside than rushing to exit.
Where in Ohio is the duplex located? I invest in Ohio and see meaningful differences in tenant demand and lease-up timelines depending on the city. Happy to talk it through if another perspective helps.
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