All Forum Posts by: Dylan Speer

1 - Understood

2 - Understood, will try to list when renovations are almost done in November hoping I can get some offers in. 

3 - "Taking the loss" is only an option under the assumption that I actually get an offer worth taking. I'd consider writing the bank a check for a couple grand but surely won't for $10k or more. This is a $250,000 place so unless rates really come down soon (which they won't), that buyer is probably not going to be biting. Unless an investor wants this, which anyone in their right mind wouldn't.  

 I don't think I'll be able to sell it for what I'd need to in order to break even. I am opposed to renting it when renovations are done because I'll lose money every month between what renter gives me and what mortgage is. That's probably what will have to happen until I can sell. I bought it at the peak of the market. 

Not headed to foreclosure. Just want to get rid of this place.

No no no. The loan would stay in my name. The buyer would get the deed and wouldn't be on the note. 

Too risky. 

Hi everyone,

I recently got contacted by an investor who is interested in doing a "subject to" deal on a condo I own. The proposal sounds promising, and I wanted to reach out to see if anyone here has experience with this type of arrangement.

The investor has offered to give me $10,000 upfront, which seems to indicate that he has some skin in the game. Additionally, he mentioned that a lawyer would be involved in the transaction, which provides some reassurance. However, I'm still cautious and want to ensure I'm not missing any critical details.

Has anyone here done a subject-to deal before? How did it go, and what should I watch out for? Also, with the investor putting down $10k upfront, does this typically mean they're more likely to keep up with the mortgage payments?

I'd appreciate any insights, advice, or experiences you can share. Thanks in advance for your help!

Best,

Dylan 

 That's probably what I'll do. 

 Yup. A good income wouldn't be as sweet with no access to good debt. 

Might just bite the bullet and dump a few hundred bucks down the drain every month until I can sell this place and break even.

What a waste

No to air bnb.

Really don’t want to chase bad dollars with good dollars. 

Couldn’t I sell for a loss, and pay the bank back whatever I owe them but borrow that amount? So rather than selling $10-15k of  investments, couldn’t I get a short term loan to use to pay bank back?

Hello BP,

I need some advice on what is the worst investment I've ever made.

Overview:

• - Purchased a condo in 2022 for $270k, with a 3% down payment. Currently owe $255k.
• - Mortgage rate is 6.125%.
• - Lived in it for a year, then moved out to rent elsewhere (where I currently live).
• - Rent was $1,750/month, but the mortgage was $1,900/month, plus an HOA fee of $360/month.
• - This meant I was out of pocket $510 each month.

Fire Incident:

• - In November 2022, a fire in the unit above caused water damage to my unit. The insurance deemed my unit "unlivable," and my tenant terminated their lease.
• - Fortunately, my insurance policy covered my lost rent.
• - Recently, my property taxes increased, making my monthly payment to the bank $2,200. My insurance currently covers this until the unit is rebuilt, with the rebuild expected by November 2024.

The Big Question: Once the rebuild is complete, the insurance payments will stop, and I'll need to find a renter. However, the rent won't come close to covering $2,200/month, and HOA dues are expected to increase when they renew their insurance policy. To break even after commissions and closing costs, I'd need to sell for at least $275k.

What would you do if you were in my situation?

I have a good job and substantial investments but want to avoid liquidating assets (as I believe my investments have a lot of appreciation in the coming years), or paying the mortgage out of pocket every month. I also don't want to be cash-strapped from using my W2 income to cover these costs. I'm so sick of dumping money into this place that has underperformed so much.

I'd consider a short sale, but my credit would take a hit for over seven years, and I'm likely in too good a financial state to qualify for one. Part of me feels like just letting the bank take it back and then paying cash for things for the next decade.

Thanks for your feedback.

Is that always the case that the Loss of Rents coverage is paid after the unit is fully fixed? Thank you for your input.