We Will Laugh SomedayThe wild experiences with tenants - the crazy excuses they give, the damage they do ...Then, there are the things that happen to the property - the repairs, the deterioration, the “normal wear and tear”, the relentless pests ...Add to this are the experiences with the neighbors – do those dogs bark while sleeping?

The husband died around 7 years ago and I've watched his Mercedes deteriorate in the back yard with no tag ever since.

I have another question for you: Do you work with inner city real estate, and if so, do you find it difficult to unload a rehabbed/ updated property that should hold a significant value do to increase in neighborhood deterioration/ crime rates?

This is done to quickly determine and resolve any occupant issues, secure the property (No Trespassing), halt code violation fines, and as important, to prevent further deterioration of the property, and to rectify any public safety issues.

Be aware that the as the market deteriorates, the sale prices can drop faster than you lower the price.Mike

Or is it when you let the property deteriorate without giving a damn.

I suffered this problem a few years ago when I owned a very nice rambler, I offered it for rent but the money I could get out was too much, and the house was way too nice to rent and see it deteriorate, so I sold it.

Hence the opening bid at the auction was not going to be what it was worth after the fix up.I have seen or bought REOs that have deteriorated between when the auction happened and when the property was listed or after it was listed.

YOU need to obtain and pay for proper insurance; YOU need to pay and/or appeal your Real Estate taxes; YOU are ultimately responsible for law and code violations; YOU need to provide oversight to ensure the property does not deteriorate; If you want a "hand's off" Real Estate investment, then look at REIT's!

in my case, the benefits of cutting losses via short sale or default would not outweigh the costs of credit deterioration. i plan on making investments in the future and i need to maintain my credit standing. more importantly, i dug myself into this mess and i want to get out in a respectable way. i'm wondering if i do sell, will i be able to benefit from capital loss to offset future gains.thx for the responses all!