Advice for Positive Cash Flow

[Trishna Rodriguez]

Hi All,

I am a newbie to BP, and this is my first post. I am currently renting a property I own. It was my primary home for 10 years, and instead of selling it at a loss, my husband and I figured, lets rent it until it appreciates, that was a year ago. We hired a rental company, and are taking a loss every month, but we thought, at least that's better than losing our property and any future equity. We did not purchase a new home, and are currently renting in a different neighborhood. 

We recently have become interested in buy and hold investment as a retirement strategy. We think the first step should be to get our current rental to produce positive cash flow.

Here's a break down:

Current Mortgage Principal: $106,081.95 @5.875%

HELOC: $25,643.99 @8%

Monthly Mortgage Payments: $936.76

Monthly HELOC Payments: $257.32

Pool Maintenance: approx. 100/mo

Total Monthly Cost= 1294.80

Rental Income after Taxes $20/ Rental Co. Fees $100 = $899.10

So monthly I have a loss of $394.98

Me and my husband have good credit, and good 9/5 jobs.

Does anyone have any advice or thoughts on how we could possibly make this situation profitable?

I kick myself now for taking the rental companies advice and starting the rent so low, I now believe I probably could have gotten 1100 or 1200 a month. But now we have renters, so don't know how to get out of it.

Really enjoying the forums, and appreciate any advice that more wise investors may have.

Thanks all!

Trishna