All Forum Posts by: LeOla Fletcher

@LeOla Fletcher If you can secure a tenant quickly, renting aligns with your real estate investing goals, especially with Section 8's guaranteed income covering most of your mortgage. However, being two months behind adds urgency and risk, as initial rent payments may delay. Selling could net ~$60K after costs, relieving financial stress and providing a reset for future investments. If arrears feel overwhelming, selling is the safer option to avoid foreclosure. Prioritize financial stability before scaling your investments.

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Hey Leola, I'm a local broker and investor here in Sac. I see three viable options for you: 

1) Rent it STR (we manage 100+ Airbnb / STR properties, it's a great strategy and you can definitely make your $2400/mo)

2) Sell the property Subto. Someone, including myself, would be happy to buy the property in exchange for taking over the low interest financing. I would just pay off the arrears, pay out your equity, and transfer title. 

3) Sell on the market, but then you'll lose some of that equity in closing costs and commissions. 

Hope this helps!

It is a terrible rental. 1) The rent may not cover the PITI. Add maintenance/cap ex, vacancy, PM, misc and this is likely negative more than $500/month even if self managed (much more than the negative $200 that you indicate you are ok with) 2) if you are behind on mortgage, how are you going to handle being negative $200/month, or more like negative $500/month? 3) where are the necessary reserves?

You need to contact the lender to make arrangements in addressing the delinquency.  I suspect you will be required to sell the property and for less than $399k.   The subtract off selling costs which will get you to near what you paid for the property (which will net you a small amount after paying off the loan and the missed payments).

Before investing in next RE 1) get you finances in order 2) build up adequate reserves 3) learn to analyze the numbers better.  Understand the 50% rule.   Even though it is not accurate in all markets, recognize there are markets worse and better than 50% rule and be able to justify any discrepancy.  Understand why conservative underwriting is desired. 

@LeOla Fletcher

I'm sorry to hear that. Have you called your bank/servicer to talk about your options? 

Hi LeOla, It’s great that you’re considering using your property as a starting point for real estate investing! Renting it out could work, especially with Section 8, as the guaranteed income could help cover most of your mortgage. However, being two months behind adds urgency. If you can’t secure a tenant quickly, selling might be a safer option to avoid further financial strain. You could use the equity from the sale to get back on track financially and reinvest in a more manageable property to kickstart your investing journey. Consider consulting with a local real estate agent or financial advisor to weigh your options.