All Forum Posts by: Edsiaren Ignacio
Edsiaren Ignacio has started 1 posts and replied 2 times.
Post: Need advice on strategy
- New to Real Estate
- Posts 2
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Quote from @Caleb Brown:
With your situation I would sell as you mentioned. Financially since you don't have cushion I would not try to keep and rent. Contact an agent. Have them run comps and pin point value. If you can I would have your brother vacate for selling. If it's a fixer upper it would sell fast on the MLS if priced correctly. Listing is a quick process once you find the right agent.
Thanks Caleb!
Post: Need advice on strategy
- New to Real Estate
- Posts 2
- Votes 0
Hi all,
Newbie here. I have an out of state property in Norfolk VA with a 2.5% interest 182k loan (got lucky with the 2020 rates VA IRRRL) and give or take 170k equity. It's a 3bd/2ba 1600 sq ft SFH and about 1/3 of an acre. My brother has been renting it for a while and I don't believe he actually took good care of it, so it's going to need some repairs. We haven't done any upgrades since 2014 and it would need some modernization.
I made the dumb mistake of not drafting a contract with my brother and charging him only the mortgage amount so any upkeep/upgrades would be out of pocket for me and the with the mortgage increasing this month due to tax, he said that he's unable to keep up with the mortgage. This month, I'm shouldering $100 on the mortgage and I'm expecting he'll be out soon.
My wife and I will not be able to pay for the mortgage and my instinct is to sell it to an investor and ask for 222k in cash, leaving the rest of the equity to them. We're not able to move into it since we have jobs that tie us to our current location. What would you do if you were in my position? How would you take advantage of the equity? Is there a type of loan where I could defer the payments until I get it fixed up and sold/rented?