Negative cash flowing, negative equity rental property.

[Russell Hargrove]

I purchased a SFR in a suburb of Philadelphia in late 2006 with an 80/20 loan for $355k as my primary residence. My family and I lived there for 10 years and and have since relocated to Southern California. We now rent the property for $2300/month and our mortgage, taxes and insurance are approximately $2900/month. Wait... it gets better... There is a $110k balloon payment following our 40year loan of 8%. I took a personal loan of 7 years (6 years remaining) to bring the 20% loan from 11% down to 8.5% and that is $1650/month. The house was appraised for $295k and the balance on the 80% loan is $265k. Any advice on how to make this better would be greatly appreciated!!! Thanks so much in advance.

[Thomas S.]

The only way to make it better is to sell and move forward with your life. The longer you hold the more you will lose and if the market turns again you could be forced to walk away.

Sell asap and simply write it off as unfortunate lessons learned..