Hello guys, I’m in a position now where couple years ago I bought a house in a area that was suppose to be coming up because alot of rebuilds was going on, then the economy tanked. alot of the houses rebuilds was abandon and it’s very hard to rent with some possible drug dealors that moved right next door.
It’s very hard to rent in this area now, the banks aren’t welling to help (I know this from when the previous tenant was trying to grow weed in my house on the property got raided and the county wanted me to get alot done before anyone can move in.
Now my other tenant I just went through an eviction and I know it will be almost impossible to find a tenant, i’m to the point where i’m thinking of just letting this house go, but I’m thinking of my credit at the same time. I tried selling it but for the area the house is to much because the value dropped, “homevestors” couldn’t even take it off my hands.
I’m looking for some thought. I don’t want to lose the last bit of money I have saved paying a mortgage on a house I can’t seem to rent/sell.
obviously you realize if you let it go you will suffer a big hit to your credit and won’t qualify for a mortgage for, I believe 3 years even if your credit scores come back.
Have you talked to the bank about a short sale, it will also hurt your credit, but as I undeIrstand it, it wont hurt it for as long.
can you get it up to section 8 standards? the best solution is to manage to lease it and keep paying the note, hopefully you have other properties that take the ‘sting’ out of this one
This is a prime example of when someone comes to me and asks me how they should go about buying a rent house. I tell them if you buy 1 always keep buying and buy at least 3. That is because you create an enterprise and not just a speculation. If you have 3 houses each with a bank note of $600/month and they rent for $1000/month. If one of them goes empty the rent from the other 2 assures you that you won’t have to go into your pocket to pay on an empty house. The other situation is the one you have here. If you have other houses in your portfolio that have equity then you may want to sell one take the profit from that house to offset the loss on the sell of this one so the hit is taken by the enterprise and not you personally. Each house should stand alone but if one experiences a problem the problem is borne by the enterprise not your personnel pocket.
@andydallas I’m very concerned about it taking hit and the house is sec 8 approved. it’s a great house on the inside. I have people who drive by and beacuse of how bad the area is now. they pass. even sec 8 tenants are upping their standards when they have tons of houses to pick from now.
shortsale is not out of the question if I can ever get it done with these stupid banks.
@Bluemoon06 I have several, but over time mortgage rates, extra high property taxes her in PA (My own primary just went up 2500 for the year), insurance rates going up and so many landlords dropping their fee made me have to lower mines to compete. cost me to lose that extra chunk. All of my houses are under 6 years old so they don’t have any equity that I can collectively pull.
My plan for this year was to start doing some rehabs so I can make sure equity, but my money is now going towards the mortgage of this house.
If I can find someone who’s not turned off by the area or the next door neighbors I can get $775 which is just enough to cover the mortgage. I would even temporaryly do 700 just so I can get to cover the PITI. I’m so tired of people looking for change and to better themselves but they refuse to take care of their on neighborhood or better yet their own house.
Before I use to be fine going there now I barely want to even get out my car.
Smart investors don’t have time to leave stupid comments either…but out making money or helping others build their business.
you think all war zone areas was always war zones! I guess I wasn’t smart to have my crystal ball to see good families lose their jobs and lose their houses and mortgage companies giving anyone mortgage so cheap that they can move-in the areas they once couldn’t afford.
Unless you have something positive to contribute to my thread, stay out.
Dont know if this will get you past the war zone problem… but you can try marketing it as lease to own or with seller financing to get a decent option payment or down payment from buyer.
Maybe another drug dealer will give you 10k down to buy it w seller financing?
