Hello BP Members,
I hope you're all doing well!
I’m looking for some advice on a fix/flip property that I purchased with two friends almost two years ago. At the time, we were new to the market and, admittedly, didn’t conduct thorough due diligence before buying.
We purchased a property in the Atlanta area, renovated it, and listed it for sale. Unfortunately, it sat on the market for about 6 months without selling. Since it was over 12 months with my HML, I ended up taking the property under my name with a 30-year conventional loan. Since selling wasn't working out, we decided to rent it out. However, our tenant turned out to be problematic—late payments, issues that led to an eviction, and additional repair costs before we could relist the property for sale.
Now, after months of making mortgage payments out of pocket, we finally have an offer. However, to close the deal, we each need to contribute an additional $7K. My two partners are willing to pay their share, but they’ve also offered me the option to take over the property completely since the loan is in my name.
Here’s my dilemma: If I keep the property and rent it out, I could get around $2,300 in rent, but my mortgage is $3,300 at a 7% interest rate. That means I'd be covering a significant shortfall every month. Would it be wiser to sell and take the loss now rather than continue dealing with this financial burden and uncertainty?
I’d love to hear your thoughts on the best course of action in this situation. Any insights or suggestions would be greatly appreciated!
Thanks in advance!
