Rental Underwater

[Wes Eaves]

When my wife and I bought a new house, we turned her house into a rental. I negative cash flow about $150/month because the house is underwater by about $80k (value $100k, owe $180k). She took out a first mortgage and a HELOC for the 20% down in 2006.

I have another rental that has a positive cash flow and between the two, I still maintain a positive cash flow every month.

I wanted to get some advice from the seasoned pros as to what their advice would be on the underwater property. Should I try to get rid of it and focus on acquiring a property that has a positive cash flow?