All Forum Posts by: Jason Panick

Bill the only thing that scares me is the volatility.  I'd hate to pay down the principle and then watch the market tank or a bunch of other owners in my complex short sale/foreclose and I'm stuck with all this money in my mortgage.  I agree with what you're saying but my fear is the liquidity is not great when you are talking about putting money into a property that has already sunk down to nearly 300k once before.  Short answer, I'm terrified of that. haha

All good advice.  Hmmm...I think I'll stay put and keep my eye glued to the market.  You all helped A TON so thanks so much.  Lots of options but I'm not a savvy landlord or RE investor, so my best bet is probably to preserve my credit, keep saving for a down on another property and cross my fingers that by the time I want to move we've hit just the right kind of market to get out without too many scars. :)

Thanks Roy!

Dave, I'm about at the end of my rope with the HOA. Dave, are you saying there is a way to generate more income doing short bursts of vacation rental? Wouldn't that primarily only work during summer months? Also, what would the added expenses be? You mean constant advertising etc?

Well, as many have said, to get out of the property is going to take a sale of about 440,000.

Good point Patrick.  We've considered staying there another year or year and a half, but are not sure that paying 2700 a month on a dead weight property is prudent.  Not sure if taking the short sale hit but possibly renting something cheaper is viable...it's a problem with a lot of variables.  Which is why I appreciate everyone's help!  Thanks!

PS, what's really killing me on this property is the HOA dues. Which basically pays for maintenance of exterior of property, landscaping and a pool (this is a 70 unit condo complex). When we moved in, it was 275 a month, now it's 446. That takes a big bite out of the rental potential and out of the property value because you don't get much for that high price.

Elizabeth, would you recommend a short sale or trying to bring money to the table?  After a long set of fertility treatment bills, we're finally preg (yay) but cash poor.  I'm trying to focus on saving some down payment money to get a better property down the road but would like to get this property off my back.

THAT BEING SAID, you have to live somewhere right?  And while 2700 would rent my family a bigger place here, it would still be 2700 out of pocket every month (rent is expensive here, I'm in Santa Cruz County).

Yeah, thanks guys.  I've contemplated short selling MANY times (we just got preg which could be the excuse we need) but have been real nervous about the credit hit as far as being able to rent a property myself or buy in the near future without getting screwed on rates, etc.

Yes, the market is so volatile that it could EASILY (and I say this because similar properties have done it) jump to 430 or 440 and I could get out breaking even on the sale or whatever...BUT, I have to sit around waiting for that. :/

So here is the situation everyone...

My wife and I bought a condo back when the market was sky high at 439,000. It went as low as 300,000. It's now around 410,000 and we owe 415,000. Our monthly mortgage is about 1900, property tax around 350 and HOA dues are 446. Let's call it an even 2700 a month.

The going rate to rent this property in my condo complex is about 2,000-2250.  Let's say I can get the top amount (not sure if I can), and I got with a property management company, I end up getting about 2,025 a month.  I still owe around 700 a month.

IF I can afford to pay that 700, does this make sense?  Part of me feels the property SHOULD be giving me cashflow or at least breaking even.  The other part of me is like, "Well, if someone is paying the majority of my mortgage and I can wait out the prices to climb more, etc, this might be worth it."

Is there a firm formula or rule of thumb for people on how much to put back into a rental on a monthly basis?  Any help would be appreciated.