The risk is worth the reward (at work we call it Operational Risk Management).

If the property is truly worth $36.5k, just sell it, pay off the high interest loan, pay Uncle Sam short term cap gains, and you may even have some cash left over which would be a huge win.

Jay Hinrichs It’s funny because those who bought a 4 plex in Phoenix after the crash now have experienced the rebound.I was late to the game and bought mine in 2014, but I could have bought dozens of them off the MLS for around $150-175k and they are now worth $300-350k.

Hopefully your investments are worth more because of the appreciation in philadelphia.

Solution: Only close with an experienced closing attorney and always make the borrower get the lender's title insurance.Your collateral (the property) may be worth less than you think - OK, let's assume you definitely are in first position.

A little bit about me:- located in Fort Worth, TX- lead worship at The Paradox Church in downtown Fort Worth.- I'm 25- I am the frontman for an indie/pop/rock band, called McAllister.- I am currently taking courses to get my real estate license- I am interested in all types of real estate investing (wholesale, buy & flip, buy & hold), but my long term goal is to build a portfolio of buy & hold properties.I would really like to connect with any & all of you that are located in DFW!

My husband and I currently have 1 rental unit, a townhome which cashflows a bit over $500 a month in the Portland OR area, I have had this unit about 4 years now, so I got it for a great price at a good interest rate.I also have my own home, and both of these properties have a lot of equity in them, I have about $260K worth of equity altogether that I could get on an HELOC if I wanted to (this is the 80% LTV less current mortgages, actual equity is more). 

This house will fetch 160k easily with about 20k worth of work.

And if these property looks like it's going to be able to get you the return you want, then I'd say it's worth it.

If it helps she owes about $100,000 and the house is worth somewhere between 200-225k.