Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 4 months ago on . Most recent reply

User Stats

4
Posts
2
Votes
Alyssa Balam
  • Houston, TX
2
Votes |
4
Posts

Forclosure or try to sell at a loss??

Alyssa Balam
  • Houston, TX
Posted

My husband and I acquired a rental property in 2023 with hard money with the intention of rehabbing the home and renting out the 3 units, refinancing and paying back this short term loan.

Unfortunately the ARV we relied on was significantly off and we have been stuck paying a high interest payment on this loan for months. We've tried to sell the property outright with no luck and would only be able to refinance if we put about $80k down.

Basically, we’re at the end of our rope with the place. Thoughts on (1) biting the bullet and starting the foreclosure process versus (2) waiting it out and trying to sell the property (at a loss)? No one putting in offers at our break even selling price. 

Note: All units are leased out currently and the total rent is currently equal to the interest payment we’re making so we’re at a break even but obviously can’t do this forever.

Also, the lender won’t take back the property in leu of payment-we asked.

  • Alyssa Balam
  • Most Popular Reply

    User Stats

    1,192
    Posts
    1,584
    Votes
    Mark Cruse
    • Investor
    • Fort Washington, MD
    1,584
    Votes |
    1,192
    Posts
    Mark Cruse
    • Investor
    • Fort Washington, MD
    Replied

    I dont understand why a HML would do a deal with skewed numbers in the first place. Was it your rehab over runs which made the numbers go left. ? For me, If i could come up with the 80k I'd do it, and wait it out for awhile with a decent rate. Putting that much down with a normalized interest rate I assume the cash flow is there. I'd ride that horse for 5 years or so to see where the appreciation and market is. This is the importance of having multiple exit strategies. 

    Loading replies...