Like a good investor, I am prepared to hold the house for the Congressionally approved 5 years and live in the house the last two years to receive favorable tax treatment should all of the above fail --praying all the while for a decent tenant who could actually take care of a freshly rehabbed house AND change filters AND cut the grass.

This place is a breath of fresh air in the self-serving, screw or be screwed storm of this industry.

The only visible signs of up-dating are new carpet and freshly painted interior, nothing else has been done.

Sally wasn't asking what to do but instead was responding to the OP which I find somewhat embarrassing when I realize I just revived a thread from 3 years ago and responded as if it was a fresh topic.

From the sounds of it, you're fresh to the game.

Freshly paintedetc, etc.

If you are selling a house in an area that sells for $100 a square foot for an average house that needs some updating and you put yours on the market all freshly rehabbed for $90 a foot, which one do you think people will buy?

Gorgeous tile, fresh hardwood, new cabinets, stainless steel appliances.

He sees his best chance as walking away from the place under the terms of Settlement, and taking the add’l credit hit for this, but being able to start fresh somewhere else.ACTION: I asked him to email me a few-sentence summary of what he owes, what the current state of play with the bank is, etc., and told him we’d look at the numbers and see if there was a way to help him.He has plenty of motivation, but negative equity.

If it's a new construction freshly rehabbed it would sell for $225k-$300k depending on where its located but older houses that are newly rehabbed sell for $200k-$250k.From a buy and hold side I would never want to be higher that 65(maybe 70%) LTV and with this model I don't see why I would ever have to.