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 over 9 years ago on . Most recent reply

User Stats

6
Posts
1
Votes
Nick Arenaso
  • Investor
  • Hollywood, FL
1
Votes |
6
Posts

Need advice on an underwater investment

Nick Arenaso
  • Investor
  • Hollywood, FL
Posted

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

User Stats

2,024
Posts
1,412
Votes
Mark Ainley
  • Property Manager
  • Roselle, IL (Chicago Suburb)
1,412
Votes |
2,024
Posts
Mark Ainley
  • Property Manager
  • Roselle, IL (Chicago Suburb)
Replied

@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?

business profile image
GC Realty & Development LLC
4.6 stars
688 Reviews

Loading replies...