Have three investment properties that I can no longer afford. I invested in real estate over the last three years and I can no longer afford my houses. I am disabled and now am on a fixed income. I have renters but I still have to make up for the balances every month. What do I do?
2007-11-13 11:02:53 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
So, what exactly was your plan investing in negative cash flowing properties? Regardless of anything else, you do not invest in negative cash flow properties... after reading this post, anyone wanna take a guess why that is?
Now, having gotten past the lesson, the first question is, do you have ANY equity in these properties that will allow you to sell out of them?
If not, find a partner who has enough to make up the negative cashflow, and offer to split the equity position created when these properties eventually go up in value again.
Or, time to have a wee rent raise, and then you might still need help.
2007-11-13 12:01:33 · answer #1 · answered by Rafael P 4 · 0⤊ 0⤋
As a real estate agent I have found that you can really get some good deals but it takes at least a month of researching a neighborhood. I would do this..I would use the only 100% accurate way of finding value and that is COMPARISON. Look at actual recent sales in the area and with condos thats so easy to do as they are all the same size and model basically. Find a condo you are thinking of buying...then, look for all the recent sales in that area. No further back than 2 months as property values are still going down. From an investment stand point, in Sacremento, I would not buy right now as its still going down. Why not wait until it bottoms out. Many investors 1 year ago jumped on the train too soon and the train went off the track. Be very very cautious, wise and patient. Now is not the time to buy from an investment standpoint. I know as a real estate agent this might sound unusual but I am being 100% honest. If it was to buy for shelter or family then now is a wonderful time to buy but as a safe wise investment...wait.
2016-05-23 01:28:00 · answer #2 · answered by nakita 3 · 0⤊ 0⤋
Too many people nowadays are trying to invest in real estate that doesnt cash flow. They look at P & I and think that if the rent is higher than that, they will make money. As you are finding out this is not the case. Whatever rent is you need to mulitiply by .60 to .50 and whatever that number is, is the most you can pay for you P&I to cashflow the property. Basically your only way out is the bigger fool theory. You gotta find a bigger fool than you to sell the property to because no professional investor is going to want your properties and is going to know its a money pit. A few years ago there was an abundance of these bigger fools, but its in such short supply today.
I dont knwo your balances that you have to pay every month, but if you can find some sort of extra income to help pay those balances you should be able to get more rent in the next few years. Just cause your disabled doesnt mean you cant sit at a desk and do data entry. Obviously you were able to sit and type this question.
Oh...you might find one of those bigger fools as your renters. Offer to lease option the house for them so they can buy it and make sure the lease option is more than the rent and enough to cover everything and make sure you state in the L.O. that they are responsible for all repairs during this time. If they eventually cant make the payment, at least you got a few months of relief from having to make up the balances and if they do keep paying and can refi in a year or 2, then you are out of them free and clear!
2007-11-13 11:31:01 · answer #3 · answered by Anonymous · 1⤊ 2⤋
In the market in Australia is not good. I would sell one or two of these investments. If you are in Sydney do it soon as theinterest rates are going to climb & the property won't be worth what you paid for it.
2007-11-14 22:02:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Raise the rents or put the properties on the market. Could you refinance at a lower interest rate? Good luck!
2007-11-13 11:13:07 · answer #5 · answered by Tiss 6 · 1⤊ 0⤋
List the property for sale and hope you get a buyer ahead of foreclosure. Ask the tenants if they would be interested in buying and could qualify to take over the loans.
2007-11-13 11:06:19 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You could try lease options with your tenants. Get them to give you a little cash down for reserves and raise the rents to cover the mortgages until they can actually put together financing.
2007-11-13 12:33:16 · answer #7 · answered by kirk m 3 · 0⤊ 0⤋
Try giving a Realtor that you trust a call and ask their thoughts on your situation. Make sure that it is someone that you trust and that they don't push for you to just list your properties. It might be the right advice, but you want to make sure that it is in your best interest.
2007-11-13 12:21:40 · answer #8 · answered by Stephen Jagger 1 · 0⤊ 0⤋
definatly raise rents ... hopefully leases allow ?
list for sale with realtor
hopefully investments are not tied to each other
2007-11-13 11:30:32 · answer #9 · answered by Mildred S 6 · 0⤊ 0⤋
Raise the rent, or sell.
2007-11-13 11:13:54 · answer #10 · answered by don_sv_az 7 · 0⤊ 0⤋