What to do if mortgage is to high to rent?

[Joe S.]

I need some ideas. What would you do if you had a house that was big and nice, but the mortgage payment, as well as the solar panel payments equaled more than you could rent it for?

[Steven Carter]

What about airbnb or a furnished short term rental like 3-6 months? those typically rent for a lot more

[Cassi Justiz]

1. Refi your mortgage to a lower interest rate to make the number's work. 

2. Sell the house and take the equity and buy something that does cashflow. 

3. Utilize a creative rental strategy that allows you to rent for a higher rate (Airbnb, rent by the room, furnished rental, etc).

 I personally wouldn't want a cashflow negative property. But there are some people that are are okay with negative cashflow. 

Also, it's worth noting that solar panels that have a payment attached to them will generally not bring much value to the home. If you are close to being able to pay them off, it may be worth it but I'd consult an appraiser or agent that is familiar with your area before doing so.  Buyers will generally need to qualify to take over the payment in addition to the mortgage payment. 

[Marc Rice]

@Joe S.

You could build an ADU on the back to generate more revenue, turn it into a short term rental, or sell it.

[Joe S.]

Originally posted by @Steven Carter:

What about airbnb or a furnished short term rental like 3-6 months? those typically rent for a lot more

The HOA has some sort of language That would prohibit Airbnb.

[Jai Reddy]

@Joe S.

If it a property that appreciates, then use the nett loss from that to reduce any taxable income from the rest of your portfolio. Your payday on that property will be appreciation, which you could take your growing equity out to finance other purchases.

If it doesn’t cash flow or appreciate, sell now unless you can increase future cash flow by value add. Else, sell now when market is hot.

[Steven Carter]

@Joe S.

Yeah then short term leasing might be a good option if the others don’t work out.

Good luck

[Lynnette E.]

Remember that the solar panels will reduce the tenant's electrical bill, so you may charge higher than normal rent with the correct advertising.

[Joe S.]

The house is 3100 square feet. Wonder if it could be used as an assistant Living?