Try to lease,rent to own or FSBO?

Here is my situation.

I bought a condo in Sterling Heights, MI back in Oct 2003 for $158,100 . Right now I owe $144,500 on it and am towards the end of my 3 yr ARM which was for 4.5%. The condo’s around me are not selling at all, and they do t-sell they are selling for what they paid for them.

Somewhat luckily for me the builder made half condos and half apartments, my apartment renst for$1270 for one year and $1070 for a two year lease. So that is what I am going up against.

My payments right now are $1080 a month and my dues are $134 a month. Taxes were $2,200 last year which are included in my mortage. Insurance should be around $400 a year I am not 100% positive on that.

The rate I can get right now is 6.75% on a 7 year interest only loan which would make me around $812 a month then I add on $190 a month for taxes so $1002 right there and $134 in dues = $1136 add on another $35 a month for insurance and we are at $1171 a month so if i get the $1270 a a year that would be ok. But hard to count on that. Also total closing costs for this are around $1200 so I can almost add another 100 a month to my expenses for the 1st year

Nothing is selling in this area right now, i think my unit has 6 for sale out of 8 right now and all have been for sale for some time.

I am getting married in June this year and soon after we would like to move into a house. The ARM is done in October.

So should I try to sell it FSBO with creative financing to help people out, try rent to own or just rent it straight out.

If I do FSBO I will not have to refi hopefully as its not worth the costs to do so. I will put it up for sale right after we get married. Rent to own I will probably need to refi and if I lease alltogether I will have to refi to get the cost down where I can almost break even.

Thoughts are welcome and if there is something that I missed that would help anyone please let me know. I need to figure something out, maybe I need a mentor :slight_smile:

I am assuming that you have a job also. If the debt is hard look at the refi as you had suggested and sell on lease option. You can lock in the payments for a short term…7 years. One thing that you are missing is the depreciation on this property. I am not a tax person but I would gather that it is at least 2K per year. As far as that your cashflow should be higher.

Just an idea. Anytime you cannot sell retail then go with lease option.

right thanks i was not looking into all the tax implications when doing this, but I figure there are some tax shelters I could get into for all of this

just got a cma done and it appears that everyone is listing their condo for anywhere b/ 3-10 less then what they paid… This is not good news. We are not in a rush to move or get out, but damn I thought it might be rough if I can only get what I paid for it :-[