Income Property

9 Replies

We have an income property in another state. We have had it for almost 10 years. It is an interest only 10 year arm. It will reset in February and become a 20 year arm (principle and interest). There is no equity in the property. The tenants pay well, however, we know we need to get rid of it but we don't know what to do after all of this time. The clock is running out. 

Please tell us how we can creatively handle this situation. We are open to any and all advice

Give it to the bank, Deed in Lieu of Foreclosure?

agree with @Jon Klaus  

, we have had several tenants buy the property that they have been living in for years.  That means no surprises to the buyer and no cleaning or painting for the owner, win-win!

Originally posted by @David Krulac :

agree with @Jon Klaus 

, we have had several tenants buy the property that they have been living in for years.  That means no surprises to the buyer and no cleaning or painting for the owner, win-win!

 And no commissions. This is my favorite way to sell a rental. I often screen tenants based on their potential ability to buy. 

I want to thank everyone for addressing this challenge. 

Our current tenants are not in a good financial place to pursue home ownership. I looked up, "deed in lieu of foreclosure." It sounds like an interesting option for us, but, I am not sure  how that action will affect our credit.

Finally, I would have liked to walk away with $10,000 ...  I believe in miracles. Does anyone know of a way I could make this happen?

@Sheila C.

Could you provide actual figures like

Property Taxes

Repairs and Maintenance

Property Management

Insurance 

Rental Income (Monthly)

Vacancy Rate 

I'd be able to assist.

James Syed, Real Estate Agent in IL (#471018522)

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