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All Forum Posts by: Tony T.

Tony T. has started 1 posts and replied 4 times.

Post: Selling an underwater rental.

Tony T.Posted
  • Gainesville, GA
  • Posts 4
  • Votes 0

Would this be a good candidate for a Master Lease? Would liability pass through to me if I was involved in one. 

P.S. 

I had a tree recently cannon ball through the roof (luckily no one was in the room at the time and insurance took care of it), but the potential liability on just my name is a motivating factor in wanting to get out of it. 

Post: Selling an underwater rental.

Tony T.Posted
  • Gainesville, GA
  • Posts 4
  • Votes 0

Thanks Ethan, I responded in a PM with a little more detail for you. I'll say this here for the sake of the thread as well. The property isn't in a recovering area like Gainesville, so I suppose I need to explore the quit claim further if there isn't another option. Other than my name being on the rental I'm floating two mortgages now, even though it's paying for itself, I feel the right amount of bad luck can put me in a tight spot. I figured I would have to start a default for a short sell, not ideal, but not out of the question. 

Post: Selling an underwater rental.

Tony T.Posted
  • Gainesville, GA
  • Posts 4
  • Votes 0

I have a single family home that I have been renting out for 2 years in Georgia. It was my primary residence from 2006 (I know, the worse possible time to buy) until I moved in 2014 for a better school district. It has been a positive cash flow situation and a good learning experience in rentals, however I don't feel comfortable having a rental in my personal name and not under a LLC. My understanding is that you can not file a quit claim to a LLC because the mortgage will call the loan when the insurance gets changed. In short, I just want to sell it, or even sell it short. It's currently and has been rented out with a decent tenant due to resign in August.

I'm somewhere in the range of $20k underwater, does anyone have any experience, ideas, or suggestions about selling or if there is even a market for something like this? 

Post: Due on Sale Clause

Tony T.Posted
  • Gainesville, GA
  • Posts 4
  • Votes 0

It happened to this gentleman. Seems the trigger is when the hazard insurance is changed. 

http://www.biggerpockets.com/forums/311/topics/183...

The best solution I have found when talking to my attorney is to get an umbrella policy to "reduce" the risk. It is still insurance so if a law suit does happen unfortunately they will be investigating you for intent in order to decline the coverage.