I need help on this

[Solomon Mamo]

Hello Dear BiggerPockets,

I have a rental property in Williamsburg, VA. The reason why i have this property is because i moved to another city for work and was not a good idea to sell at the time. I never made any money (cash flow) from this property for the past 8 years except spending money for different expenses and repairs (due to a bad renter and age of the townhouse). I also pay round $100 for the mortgage difference. Now i was told by the property manager that there is a big issue with the townhouse (molding and water leak) which i have to spend $32,000 to fix it. Allstate dropped my insurance a year ago due to another high price fix and my current insurance does not cover most of this. I don't have that much money and was wondering what to do.

Any suggestion?

Thanks

Solomon

[Ka'Ron Purnell]

Hey Solomon, I'm currently in Newport News. Williamsburg is in my local area. The best solution is going to depend on what you are trying to achieve. A few suggestions for you to consider:

1. If the property is part of an association, maybe see if the association will cover any of the repairs. It may save you a few thousand. 

2. Buckle down and ride the wave of the property is not performing as desired. You can keep it in your portfolio and acquire a few more to maybe offset your losses. I heard this on a podcast and is something to consider if you are playing the long game. 

3. Sell it to another investor as is. If there is value in the deal for them they will be willing to pay for the repairs. 

4. Borrow money from friends, family, or private investor to cover the repairs. 

5. Take a secured loan against a vehicle that is paid off. I came across a bank that lends up to 130% of the Kelly Blue Book value (credit score dependent of course). 

6. During your next tenant changeover you can maybe do a lease option to buy and include maintenance and repairs in the lease so your tenant will be responsible. Consult a real estate attorney first of course. 

I hope this helps.