Rental Property. Upsidedown on it. Losing too much a month. What to do?? Need help!!!?

Question

I'm losing 900 a month. Can't rise rent tenant has contract ( Sec8). I can't sell it because i'm upsidedown on it. My rate just adjustde. Dont know what to do. I need so help if any knows about speacil programs up there or knows of private lenders. Credit score is Excellent.

Answer 1

You should be able to do SOMETHING to reduce your loss, if you can't actually make a profit on it... I don't know much about section 8 rentals, but I would think that the rent is somehow based upon some standard, whether its average local rents or what... perhaps you can find someone from HUD to answer your question.

But I think you need to get out of subsidised rent (if you can) and obviously try to get a higher rent from it.

I have a property that kept going up in price due to an ARM, and was vacant for about a year due to some tenents messing it up and me not having the cash to fix it back up... I now have it occupied and instead of losing $400 a month, I am now breaking even, after taxes and insurance... but before the payment went up I was making about $100 a month.

Good luck with your problem... with excellent credit, your options should be plenty... I would shoot for a re-fi. There's gotta be SOMETHING you can do. Losing $900 a month sucks...

Contact a local credit union...

Answer 2

Chances are you are only getting 900.00 because you are renting to someone through Section 8. Most states have a standard that they will pay for someones housing. If you were to not renew the lease when it is time and have the people move out, you could probably get alot more per month for the property. Also try refinancing the mortgage at the same time and maybe at some point you can get back on top of this again.

Answer 3

If you are already 'upside down', you can't expect a decent refinance. You have apparently taken MORE out of this property than you should have. Even if you COULD raise the rents, you're not going to get an additional $900 a month out of this tenant.

Sad to say, it's time to pay the pauper. You either made a very poor investment, or you sucked far more in 'equity' out than this property can handle.