Updated over 2 years ago on . Most recent reply
Exit Strategy Help
Good evening BP Community. I'm a veteran investor trying to think of an exit strategy for an existing 0% seller financing deal that I'm currently paying down. Here are the particulars:
Price: 50K
Amount Owed: Approximately 35K
Interest: 0%
Current Status: Rented but tenant isn't stable with significantly below market rents. With updates, new management, and a new tenant, rents will increase from a late, stressful $675, to an on-time $1150 monthly.
I got the contract to the house as a part of a two house portfolio. I have a 3 year contract on it, and the term is up in July 2024. I want to close by year's end so that I can place the house under property management and let them stabilize the situation at market rent. I'm not sure how I should proceed. Do I...
Secure private financing, own the house outright, place it under management and use that with other units to get a cash-out refi, or
Finish out the contract with great terms but deal with an unreliable tenant that's continuing to cost me money monthly and prolong the process of management until the summer.
Thank you for your time and insight. Any thoughts will be helpful.
Kay
Most Popular Reply
Kay, I would recommend talking to the seller and evicting the non-paying tenant as soon as possible. Get a new tenant in there and require a 1 month rent security deposit. Is there a reason you are delaying the eviction? I am just curious.