Updated over 11 years ago on . Most recent reply
Take a loss on the property or raise the rent
2 years ago I was plunged into renting my property after a loss of a job and split from my partner in Henry county Georgia where the home is under water and I now own 100% of the property. However, even though the value has risen in the past year, it is still almost $50K under water of what the property is estimated to be worth and do not want to walkaway from a semi-higher end home.
Rental income does not cover the mortgage and the maintenance on the property, so leaves me in the negative of about $200 each month. About $150 is due to HOA maintenance.
Existing rent is shown to be about $50 lower than what it can sustain (still will have negative flow). The lease agreement renewal is coming due in March and would like ideas on how, or should it increase as higher end homes have vacancies longer than others in the area. Renter has been there for 2 years with no issues (fingers crossed).
With the negative cash flow and still under water, thoughts on best options for a way forward?
Thank you