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12-29-2007, 02:29 PM #1
Renter
- Join Date
- Dec 2007
- Posts
- 1
Help! I have a rental property that costs me money instead of making it
I bought home almost 4 years ago. When buying the home I did not plan on moving so I took a 80/20 with a $3000 prepayment penalty if I paid it off in the first three years (I almost wonder if I saved my butt sine it changed into a variable rate after three). I ended up moving after 2 and a half months A mortgage broker friend suggest and helped me get a Opt 4 mortgage incase there are no tennants and I could pay a very low payment if I chose. In refinancing, it added on that prepayment penalty and we also added my taxes & home owners insurance for that year so I could have the cash from my escrow.
Here's the problem, I can't rent the house for what I wanted. It barely covers the mortage payment and does NOT cover the $3500 for taxes and $500 for Insurance and I also have a prepayment penalty again for the next two years for another $4000. The payoff for the loan is about what I could sell the house for which is now at the point it is $14000 more than what I bought the house for. So if I sell the house what realtor fees and months I have no tennants the mortgage will come out of my pocket (If I am lucky they will stay until I find a buyer)
What do I do sell and eat the costs or hold on to the house and how I will come out even at some point of tine...............................
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01-01-2008, 09:17 AM #2
Renter
- Join Date
- Jan 2007
- Location
- Keystone, Colorado.
- Posts
- 7
Since the house is a rental property, proper refinancing and good rental income should enable you to hold on to the property and hope for the value to go up in the long run. Some of the most effective vacation rental advertisement channels are homeaway.com, rentalsexpress.com and I would recommend that you research who is doing the best on google under: "your area vacation rentals", "your area vacation homes" and "your area lodging" and see if you can advertise or list your rental property with them.
Keystone Colorado Real Estate Experts.
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