Upside down rental property

[Roland Park]

Hey. I have a upside down rental that was my first house. Bought it on the high side right before the housing bust. I refinanced it once to get the payment lower because my family was growing and we needed a bigger home. My only option was to rent it out because I couldn’t sell it.

I’ve had a tenant in there for two years now and she just signed another two year lease. The payment is $691 and I’m charging $850 for rent. It’s a 2 bed 2 bath townhome. I currently owe 91k and it’s worth 70k. I want to unload it as quickly as possible. Is my best bet to keep doing what I’m doing and pray the market comes back?

[Vaughn Smith]

@Roland Park I suggest that you hold on to the property and keep the tenant in it, the debt pay down/increase in equity is worth it. The longer that you hold on to the property the more it makes sense keep the cashflow and let the tenants pay the property off for you or at least hold it until the tenants help you make up your inequity position