Need Advice on Rental Property I House Hacked In 2022

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Need Advice on Rental Property I House Hacked In 2022

Rebecca Bradley
Investor · Central Florida · Member since 2026 · 1 post · 0 votes

Hi, I am needing some advice from a property purchased in 2022 in Central Florida using the House Hack method. Of course, I am one of the 11.7% of FHA owners who bought in 2022 that went underwater. I am a realtor part time and full time RN. I was on a contract when Ian hit in 2022 and my contract was cancelled. For 3 months I couldn't get a job due to all the bridges being under water while living there and got behind on payments. I ended up having to take a partial payment plan. The property has a 2 detached houses and own electric (3/2) and (1/1). Was a short term rental and both tenant occupied for one year. I will list details below. It was on the market last year and it had several buyers interested but all had a poor credit and couldn't get a loan. I am looking to walk away from the property because I have too much on my plate currently. I am current on all payments as well. I need advice on what I should do to exit. Here is what I came up with:

  1. Putting it back on MLS

  2. Find a buyer to assume the FHA loan (buyer will need to clear $44,674.94 to assume)

  3. Hold

  4. Bankruptcy and Short Sale(not an option bc I don’t have delinquency)

Property and Mortgage Details

Appraised 2025: $315,000

Mortgage:

Purchased: 2022

Amount: $270,019.00

Loan: FHA

Principal Balance: $248,101.35

Interest Rate: 4.375%

Principal: $442.02

Interest: $906.15

Escrow Taxes and Insurance): $938.57

Monthly Payment: $1,949.70

Loan Maturity: 2052

Payment Supplement:

Payment Supplement

Start Date: October 2025

End Date: October 2028

Total Amount: $44,674.94

Monthly Payment after 10/28: $2,286.74

Property Description

Lot Size: 0.4 Acres

Zone: R3

Share city water

Electric: separate with Duke

Driveway: 2 separate entrances

Main Home:

3 Bed 2 Bath

1,711 Sqft

1925

Central Air, Window Unit

Privacy Fencing

Monthly Rent: $1,700/M

Detached Home:

1 Bed 1 Bath

738 Sqft

Attached Garage

Privacy Fencing

Monthly Rent: $875/M

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  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 695 votes
    6h

    Rebecca, sorry you went through that after Ian. Looking at your numbers, you may not be as underwater as it feels. $315k value vs about $248k on the first plus the $44.7k supplement is roughly $293k owed, so a straight sale is close to break-even once commissions and closing costs come out. Being current on payments keeps all your options open.

    A few thoughts on each exit:

    Assumption: that 4.375% rate is your selling point, so I'd market it that way on the MLS. Keep in mind FHA assumptions need the buyer approved by the servicer (credit and income) and they have to plan to live there, so it has to be an owner-occupant, not an investor. They'd also need cash for the gap between the price and the loan balance, plus the supplement, which is typically a separate HUD lien that gets paid off at sale or assumption (lines up with what you were told). Ask the servicer for a release of liability so you're fully off the loan.

    Retail sale: poor-credit buyers were the problem last time. Since it's two separate rentals bringing about $2,575 a month, I'd also target investors. A DSCR loan qualifies the buyer on the property's rent instead of personal income, which can widen your buyer pool, though those loans usually need around 20-25% down and decent credit too.

    Hold: rents vs a $1,950 payment cash flow on paper, but with a 1925 main house, vacancy, repairs, a property manager if you're stepping back, and the jump to about $2,287 after Oct 2028, the margin gets thin.

    Before picking a path I'd run an updated CMA and get a payoff statement from the servicer showing both liens, so you know your exact net on a sale.

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  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 411 posts · 136 votes
    6h

    Hi Rebecca, I am sorry you went through all of that, and Devin gave you a solid framework to work from. Before you choose a path, I would get two things: a payoff statement from your servicer showing both liens, and an updated CMA from a local agent who knows your area. Those two numbers tell you what each exit actually nets you.

    Your 4.375% rate is the selling point if you go the assumption route, so it is worth marketing that way, and your two separate rents make the property interesting to an investor buyer as well. One thing to weigh on holding: your payment jumps to $2,286.74 after October 2028, so run the hold numbers at that payment, not today's, and be honest about reserves for a 1925 house. You are in a much stronger position deciding this while you are current on payments, so compare the real net on each option before you decide.

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