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 