Ok, if this is a bad deal...What should I do?

I purchased a precon in Northern Virginia, my cost with upgrades was $495,000. I had to put down $30,000 as earnest money deposit(which hopefully I will get back at closing, I’m doing 100% O/O financing)
Its a three bedroom townhouse. What should I do to get this property producing some money or at least reducing my negative cash flow. Would a lease option work on a property like this? I made this investment before I found this site and was counting on No. Virginias great appreciation, but now since its seems to be slowing I would like other ways to make money on this deal. Thanks

Hey Movistar,
Can you share some more details like what it is worth and what you owe on it! As well as average rents and your payment?


I’m going to owe the entire $495,000 100%financing I believe it can rent for about $2000, the mortgage is going to be about $3000. And one sold for $520,000 about two months ago.

Question Number One:

Maybe this was just a typo on your part, BUT

You say that you’re getting a 100% O/O loan, correct? Well, O/O stands for Owner Occupied.

So if the answer to the above question is, yes it’s an owner occupied loan, then the answer to your question What should I do to get this property producing some money or at least reducing my negative cash flow would be NOTHING because you would have to be living there (Though I guess that you rent out two bedrooms and keep one for yourself).

Since you’re a mortgage broker (as per your tagline), I assume that you realize that lying about your occupancy on your loan is a federal crime known as fraud, which is very bad.

And let’s be clear here. You didn’t make an investment. You speculated. Anytime that you bank on appreciation, it’s speculation, pure and simple. Nothing wrong with it, per say. Just want anyone reading to be clear on it.

If you’re worried about this not making money now, it would seem that the easiest way out of this is to just get out of the deal. Obviously, you haven’t closed yet. Does your contract have any contingency clauses? The most notable one would be a financing contingency where if you were unable to get a loan, then your earnest money must be refunded.



Had to chuckle a little bit, posting on an open board for the world to see, admit you are not going to occupy the property even though on the application you stated owner/occupied (your right fraud), that you are a mortgage broker and then the final straw post your phone number.

Yep, had to chuckle on this one, I wonder if anyone out in discussion board land is not chuckling or better get those extra bedrooms rented.

John $Cash$ Locke

I’m sure I’ll be okay on the legal side of this, I just want to know if there is any way that I have not thought of to make money on this deal.

Here’s the bottom line on this, Shaun.

If you are getting an owner occupied loan on this property, being fully aware that you are not going to be living in it, then


As a mortgage broker, you should know this. If you’re okay with lying, cheating, and stealing to get to where you think you want to be, fine. It’s your life.

However, please don’t come here and ask us questions. I prefer to help honest people.

Good luck, you need it.


How about living in this property legally and taking the original $30,000 earnest money and buying a different property for investment?

Or you could use the $30,000 to pay your favorite lawyer.

My first post gave the scenario that I am planning to do get an O/O loan live there and rent out some rooms. If I didn’t plan on living there then there would be a N/O/O loan. I didn’t think that was important to the post because I wasn’t asking advice on the loan, Im asking what I should do to better my circumstance and squeeze some profit out of this. I’m a little dissappointed that you would assume the worst I thought I would come home to some fantatic ideas that maybe I hadn’t thought of, not to be accused of mortgage fraud. I read over my post and maybe you would think that from me asking about lease options, but I’m asking because I want to know how it works.

No need to shout. The “negative” posts wouldn’t have happened if you explained that you were going to live there in the first place or in your second post. A little clarity goes a long way.

As for renting out the rooms, I guess you could do that if you don’t mind having roommates (unless everyone has their own individual bathroom and kitchen in this 3 bedroom townhouse…then they are tenants).

One thing you may want to look into is if you’re allowed to rent to others while you’re living there. Some areas (at least where I live) must be zoned for more than single family occupancy to allow renting.

Give us more details of the property you’re buying.

2,469 Sq.Ft.
3 Bedrooms
2 Full /2 Half Bath
3 Living Areas
2 Dining Areas
2 Car Garage
3 Story
Master Bedroom Upstairs
Priced From:

Plan to build

I got it for a base of $469,000 so it gone up a little.