Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 9 years ago on . Most recent reply
![Nick Arenaso's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/342163/1695197639-avatar-nicka13.jpg?twic=v1/output=image/cover=128x128&v=2)
Need advice on an underwater investment
I hope I am posting in the right forum. If not, please let me know and thanks in advance for not judging me on my bad investment :)
In 2007, I thought I could make some $$ on a preconstruction flip.
I bought a very nice condo in a preconstruction building in the Chicago city limits (in an up and coming area, not too upscale, but not the hood - close to a lot of nice stuff and the mass transit)
I bought for 390k with 5% down and took out an interest-only loan.
Alas, the real estate bust happened. However ... my tale is not a tale of complete woe.
I rented the place out and I still manage to eke out a miniscule profit each month after mortgage, insurance, HOA etc. Minor repairs definitely do bite into the bottom line but it is a slightly positive cash flow.
I just am tired of treading water - I am not building equity, I am still underwater when I look at comps in the area (I think the place is conservatively worth 350K).
I am not real-estate saavy enough to know what my options are.
(1) I dont think I can refi cause my LTV is horrible.
(2) I cant sell without paying out of pocket
(3) I cant short sale
Any ideas for an exit strategy? I just need folks with experience to weigh in. WWBD (What would biggerpockets do)?
Most Popular Reply
![Mark Ainley's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/172416/1621421406-avatar-gcrealtymgmt.jpg?twic=v1/output=image/crop=2831x2831@0x0/cover=128x128&v=2)
- Property Manager
- Roselle, IL (Chicago Suburb)
- 1,412
- Votes |
- 2,024
- Posts
@Nick ArenasoWhere is the condo located and how big of a unit. Rents have gone up considerably in recent years have your rents followed that trend?
Do you have the ability to use it as your primary residence and attempt a Harp loan?
If you are break even you are not in too horrible of a position. Being 8 years down the road ins your principle going down at all?
- Mark Ainley
- [email protected]
- 630-781-6744
- Podcast Guest on Show #72
![business profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/marketplace/business/profile_image/717/1712787495-company-avatar.jpg?twic=v1/output=image/contain=65x65)