Advice on Investment

**1need2** · 04-11-2007, 08:35 AM

Hi All,

Im a home owner that made a "mistake" in purchasing an investment property to flip in mid 2005. I currently have it rented out and am able to cover most of the mortgage. I am wondering should i renew the lease in July with the current renters or tell them now that i want to put the home on the market? I am in (Gaithersburg, MD) Montgomery Co. DC Metropolitan area... It was also bought brand new in 2005... Any advice would be great...

-E

**TJ2007** · 04-11-2007, 10:28 AM

Yes there are a lot of peoplein this boat losing money every month.

1) You could always renew the lease on a month-to-month basis while you market for sale.

2) You can sell the home with the tenant, however in most states legally the lease survives the sale and the new owner would have to honor the lease - not sure many people will want to buy it if it

**gjtrafl** · 04-11-2007, 10:53 AM

Talk with a reator and just be open about your situation. They can provide you with the market information you will need to make your decisions. If the currrent numbers look favorable v/s your carrying costs then go for it. Look at things long term as well and see if you think your area will be in better shape next year.

**1need2** · 04-11-2007, 11:00 AM

Thank you for the advices... My sister in-law is a realtor and she tells me to hold on to it b/c there are so many places on the market. She also says i wont get what i paid for it now... Also, what kind of impact would a recession have on the real estate market? I heard conflicting reports... some say it would help drive up prices when the interest rates become lower... someone also said that a recession will cause ppl to spend less...

-E