I am a newbie and I made a big mistake in buying an investment property(townhome) in Vegas during the peak market back in early 2005. I had it rented since I bought it but my negative cash flow is close to a thousand dollars every month due to an ARM loan. I’d like to sell this property but I’m afraid I will lose a lot since the Vegas market is saturated with sellers and I dont see the rentals going up anytime soon. I’d like to know if there are any other options apart from selling the property. Thanks.
I don’t see any other options if your negative is at 1000. Have you thought about the Rent to Own option?
Benjie
can you elaborate more on the 1000 in the red?
give some numbers and the situation of the property - i.e. management, vacancy, rents, etc.
The going rate for rent in the area is $1100 and that is what I am charging. I am out of state so I had to use PM cost about $110.00 (10% of rent). I have an 4-option ARM and with about 7.9% interest rate. With the interest-only option I’m paying about $2000.00 mortgage.
I’ve thought about lease-option as well but I dont know if can charge enought to cover my mortgage.