Looking for options next door
My neighbor bought his house at the height of the market in 2006. He paid about $175,000. The market is now about $130k. His mortgage is a little over $1100. He is upside down & was going to rent it out for $1200 (that's the comps for our area for 3/2). Upon the tenants moving in, the pipes began leaking. The owner fixed them but other leaks sprung up causing the tenants to back out of the deal. He figures (& I concur) the amount to fix up the damage wooden floors, replace the pipes, & an old heat pump will cost him about $15k. He is considering a short sale to stop the financial bleeding. I don't see an opportunity for me to jump in there to make this work for both of us. Any thoughts?