negative amortization

OK here’s my situation. I bought a house at the beginning of this year as an investment. Being a novice investor I did not know what I was doing. I was planning to hold on to the house for a couple of years and then sell for a nice profit. The house was vacant for about 3 mos. but then I was able to rent it for much less than my mortgage. I have a negative cash flow of about $570.00 a month. At this time, I am able to manage the payment but I was wondering if I should rid of this investment or hold on to it for another year or so. The property has not appreciated during the past few months and I dont want to lose a lot by selling now. What are my options? The property is located in Las Vegas.

Off the wall question time will your bank alow you to make bi-weekly payments so say its 1200 per month pay 600 on the first and 600 on the 15th that way you are only paying intrest for two weeks at a time and it works out to be a intrest only and or better you apply a little to the balance!

If you can afford it and have no mortgage lates why not hold it and buy another that might cash flow 400-500 per month and try to break even!

when you say negatiive amortization, does that mean you have a loan on the property and your’re paying less interest each month on it than what the note rate states you should pay (in other words did you get an option ARM where you can pay as low as 1% monthly and accrued interest is added to the loan amount).

if that’s the case your loan amount is increasing each month and you have a $570 monthly negative. should you keep the property?? if you can afford it and you think it will appreciate over time (maybe a considerable amount of time), maybe you should keep it.

but if you’re in for the short haul and you don’t think the market will increase in value and take you out of your situation, maybe you should cut and run.

your decision.

That is what that means the more you pay the more you owe!