Get out from under it, even if you have to fork over some extra money out of pocket to close the deal.

It costs money to hold out for a better deal too--you're paying P&I, insurance, and taxes every month. If you have an escape hatch, take it.

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Posted by tirebiter

7K R&G chile land aka SF

Member since Oct 2006

10481 posts

Posted on 10/10/11 at 2:15 pm to Drilltiger

quote:
So if I sell as is, lose down payment + 10k toward mortgage. I think i can possibly counter and recoup 5k, but not much more. I have also looked into property management services route, and this would yield a break even on rental income vs mortgage payment.

Should I just cut my loses and fork over the 5k-10k? Or rent this house for a year or so and try selling again??

I would sell it, especially if you are out of market. Assuming you are factoring in the prop mgt firms cut on rental income and coming to break even you have zero excess rent to pay maintenance, potential vacancies, damage to property by renters, etc. This could cost you much more than $10k. You would gain some depreciation tax bennies on the property, but if it is offset by rental losses its a moot point.

Don't know what % you put down on the house, but if you are at 5% it is water under the bridge. Don't be like my friend and his wife from TX, their house has been on the mkt for 18 months and it is costing them $2500/mo as the wife won't agree to a significant price drop although she has already cost them $45k. The mindset of some people on these matters can be hard to fathom.

This post was edited on 10/10/11 at 2:16 pm

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