Thread: Here is my situation - need some input/advice.

Rent the condo out. That way it will help with the mortgage payments.

Originally Posted by Phils Property Deals

Rent the condo out. That way it will help with the mortgage payments.

Thanks for the input. That is actually one of the options I'm tossing around. I'm just a little nervous about the renters damaging it. And of course the fact that I would REALLY like to be completely rid of it. But I am still considering this option.

Damages or fixtures can always come in any condo or house in time. One way to make sure that your renters wont be doing it in purpose or that they take care of the house is:

1. screen the possible renters first
2. take only renters that you know
3. include certain rules and guidelines in your contract.

My advise would be to rent it out too. If other condos are ONLY selling for 65k and you owe 98k, it appears you would not make enough money to pay it off.

You'll probably lose money on renting as well, but if you're that determined on moving then just realize it may cost you a little more each month.

Make sure to have an emergency fund set aside for any repairs/damage to condo. That's what being a landlord is all about! (you may want to look into hiring a property management company)

For now let a renter pay your mortgage. Maybe in a few years you can put it on the market again.



Good luck!

If you sell it you will either have to give up your down payment money to make it happen or ruin your credit.

It looks like your best option is to rent it out. Just don't rush out and rent it to the first person that comes along. Wait until you find someone who will make a good renter.

Thanks a lot for taking the time to respond.

Just a couple of responses to your comments:

• The realtor that I am currently using has a property management division that I would be using.
• Based on what the other condos are currently leasing for I will have enough in rent to cover the mortgage, taxes, insurance, HOA, and property mgt fee each month. But nothing will be left over.
• I was thinking that aside from a $10k line of credit I have I might also not use all of my savings in my down payment and leave some in savings to cover the condo mortgage for possible months that I would be without a renter or other repairs, etc that might be needed.
• I also have a handyman that I have been using for a while that I would sort of have on retainer to do any repairs necessary. I trust him so I would feel comfortable with that.

My only other option (as I see it) would be to reduce the amount of money that I planned to put down on my new house and use the remainder of my savings to reduce my price on my condo to get it down to a low enough price so that it can compete with the foreclosures and sell and be done with it. For example, with my $30k in savings I could put $13k down on the new house and take $15k or so and reduce my selling price on my condo from $98k to approximately $83k and see if it will sell. Is this a crazy idea or a good option? Any input is appreciated. Thanks.

Your not going to sell even for $83k if other properties have solf for around $65k. Around $65k is what your going to get!

P.S. Greg can you help me? When I changed my signature a while ago my post count reset. Do you know why and how it can be fixed?

I would say you need to rent that condo, too. Don't worry about the damages, all it takes is a rental agreement. Even better, you have a trusted handyman!
Phil's right, you're not gonna sell for $83k, if everything else was around $65k.

If you have the funds and are willing to sit on the condo for several years, you may want to wait until prices come back. But that statement depends on your local RE market --- I mean if you're in a hard hit area you may want to just sell it for 65k and be done with it.
I know it means eating 30k but the risks are 1) you'll be paying maintenance on this and 2) prices may fall further.
The fact is some areas may never come back to pre-'07 levels.