All Forum Posts by: Fernando Pena

@Randy E. - That is correct although we have had to finance a driveway being paved, a new roof, and new siding because of a wind storm. So there's a smaller 2nd mortgage on the property. The challenge is that once we sell it as a fixer-upper the sale price, as you mentioned, goes WAY down because of other properties in the area with the same issue. So just trying to figure out next best steps here. 

@Dick Stevens - Gross profit is about $110/monthly after all expenses. The reason for this is because the home was not originally intended to be a rental. We purchased it for our use but ended up relocating south. Instead of selling for what would have been a modest profit several years ago we kept it as a rental. Rent started at around $1200 but has crept up over the years. 

@Dennis M. - Guilty as charged. Yes I realize this is completely on us for not managing our property properly. Not an excuse at all but we did have a baby 5 years ago and he was a difficult one so heading on a 600 mile road trip to see the house was never prioritized. Looking back I know we could have made time but it all flew by so quickly so here we are on the verge of losing any profit or value because of our inaction. And yes, we know much better now and make sure to keep anything we own much closer to us and under more supervision. 

Unfortunately the market there isn't so great. Or at least compared to Charlotte where we live. It seems that there are a number of fixer-uppers and foreclosures out there that tend to suppress values. We'll figure it out but I wish we would have done things differently at this point (of course!) because the situation has no easy solutions except to sell for a loss. 

I'm sorry I should have added that we're very likely to be upside down with what we owe and what someone will want to pay for this home. That's why I have a dilemma on my hands. 

Unfortunately as for visiting the property - it has been about five years. During that time the tenant was hurt on the job and went on disability. Then he had his adult children and their families move in so things go ugly real quick.

Thanks for the heads up about the repairs. We were thinking it would probably be more but just based on initial assessment that's the figure I had in my head. We still don't know what's happening behind the walls.

I know we made all of the rookie mistakes on this one and now have to pay the ultimate price.

We have a home in Mount Pocono, PA that is around 2400 sq ft, 3 bedroom, 2.5 baths. Tenants lived in there for about 14 years before moving out last month. The rent it was bringing in was $1450 per month. 

Unfortunately this is a long distance rental so we broke rule #1 of being a landlord and depended on a 3rd party to provide us with updates on the property's condition. Well when we finally saw it first-hand it was far worse than what we had been told. 

The tenant was allowed one cat and when we arrived there were at least 10 of them. We expected some carpet damage and that a repaint would be needed but in reality the wood floors are destroyed, windows need replacing, all carpets need to be replaced, cabinets require replacing or refinishing, and the grounds need landscaping.

Originally our plan was to fix this home and sell it. Realtor tells us comps go for around $160k but we still owe money on this home and we're probably looking at $20k-$30k in repairs. Since we can't oversee any renovations I'm wondering what our options might be here? Is lease/purchase still something that is done now? Are investors willing to take on a project like this when we still have a mortgage on the property? If so how do we find any interested parties?