My favorite place to come for my rei therapy :beer!! Here is the situation I can rent my investment property for $600 a month or I can lower the price and sell the property. The price is currently at $37,500 and it would be lowered to $33,000 or below to sell.
The house is a 2/1. I have approx $28,000 in the house. It is in Fairburn Ga. I would like to do another deal possibly wholesale, although it would be nice to make money the next time. My cash is invested in the above house and my credit has taken a hard hit due to not selling it :banghead. Ok…my creative friends give me some advice as to what I should do. Thank-u!! :smile
if your credit isn’t too hurt get a mortgage on the house for $30k, and keep the cash flow coming in,
I am self employed (real estate agent) last year’s income was not good…so between the credit issues due to not being able to pay my personal mortgage I cannot quailfy for a loan. I may could get hard money…I am not sure how it works though. I would try and learn fast though… If I could qualify for the loan of $30,000 are you saying to buy another rental house? Thank-you for your post…
if you could qualify take $3ok out of that house and take to the next house, not being able to get a traditional mortgage will hurt,I’m big on buy and hold, but maybe selling and getting cash back in your pocket may be the best thing at this point,you need to get yourself in a position so that you can get a mortgage on them (I know you know that),then you can build cash flow
for deals under $5ok a local bank (locally owned) is many times the best place to look for a loan, and normally they will use a commercial loan product,many times they are easier to deal with if you have good long term credit but a hickup or two
Are you current on your residence now?
If not, sell the house and get current.
If you are current, what was your original plan?
What has changed? Is original plan still valid?
Personally, I don’t like 2/1 so I would sell, as long as it’s been 12 month that I’ve owned it. (Less capitlal gains.) Do a 1041 exchange if you can. (even less taxes.)
How is the house currently financed?
How has your credit taken a hit due to this house? (Quantify)
Hold vs sell are very different investment strategies.
Pick the one that suits your goals.
Or pick your original strategy, unless something has changed/ not gone to plan.
My reccomendations are vague I know, but there is no possibility of another type of answer without more info.
The original plan was to buy the house and flip. Since that time foreclosures on the street and the neighbors have made this house very hard to sell. I have decided to rent or lower the price and take my losses. In hopes that I may find something to wholesale. I invested most of my money it that property :banghead. I do not have a mortgage on it.
My personal credit went down the drain about 7 mos mos ago :flush. The market has been very hard for the last year…with very little income. I am behind on my personal mortgage where I live now. It has been very busy for me lately, although it is going to take a while to turn things around on my credit.
Talk to your bank, the idea of you gettting caught up on your one mortgage might be enough to give you one for your investment.
Probably not though, unless you can show employment/cash flow. Worth a try at least.
What about a HELOC to pull some equity out?
I have a loan through my grandma’s trust fund.
Figure out a way to get some money and get your mortgage caught up.
I guard my credit as one of my most valuable assets.