Comments on: Calling All You Number Crunchers and Personal Finance Gurus (or just anyone with an opinion): Would You Sell Your (Empty) Rental at a Loss? http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html Join us on our journey to lead a debt-free, credit-free, clutter-free life. Sat, 21 Jan 2012 14:24:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Clarification on (the Non-Status of) a Short Sale http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1479 Clarification on (the Non-Status of) a Short Sale Wed, 10 Mar 2010 02:22:24 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1479 [...] way to do it. So for the record, we are not at all considering a short sale! As I stated in the previous post, I do not believe our situation warrants one: We are able to meet the expenses of owning the [...] [...] way to do it. So for the record, we are not at all considering a short sale! As I stated in the previous post, I do not believe our situation warrants one: We are able to meet the expenses of owning the [...]

]]> By: Jen@925frugal http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1433 Jen@925frugal Sat, 06 Mar 2010 16:37:39 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1433 I agree with Nicole. The bank isn't likely to agree to a short sale since you are not behind on your payments. Also, why damage your credit for no reason. Lower your rent a little (or offer one month free as you mentioned) as an incentive to get someone in the door and then plan to put it on the market next spring. Can you shift your snowballing to tackle this debt first so that you will be in line (as far as value goes) next spring? Remember, we didn't get into debt overnight and we won't get out of debt overnight. (((HUGS))) I agree with Nicole. The bank isn’t likely to agree to a short sale since you are not behind on your payments. Also, why damage your credit for no reason. Lower your rent a little (or offer one month free as you mentioned) as an incentive to get someone in the door and then plan to put it on the market next spring.
Can you shift your snowballing to tackle this debt first so that you will be in line (as far as value goes) next spring?
Remember, we didn’t get into debt overnight and we won’t get out of debt overnight. (((HUGS)))

]]> By: Patrenia http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1430 Patrenia Fri, 05 Mar 2010 02:35:37 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1430 Sounds like a great plan. Yes, you must do what is comfortable for you and your husband and I do understand that taking a loss is not an easy pill to swallow. The way the real estate market is today, you just don't know what the right decision is because of the uncertainty. Draw some positive energy your way and I'm sure it'll be rented out in no time freeing your funds for paying off debt. Sounds like a great plan. Yes, you must do what is comfortable for you and your husband and I do understand that taking a loss is not an easy pill to swallow. The way the real estate market is today, you just don’t know what the right decision is because of the uncertainty. Draw some positive energy your way and I’m sure it’ll be rented out in no time freeing your funds for paying off debt.

]]> By: Forest http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1429 Forest Thu, 04 Mar 2010 21:01:01 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1429 Oh! I see... Oh! I see…

]]> By: Karen http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1428 Karen Thu, 04 Mar 2010 20:34:24 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1428 I would not sell or rent for a lower price. if anything, I would rent for at least $1,000 month(if not more). You must cover the cost of the mortgage. You must also put together a savings to cover the times when the house is not rented. The additional or savings on the rental is not to be included in your debt reduction. The rental should have its own bank account. Also, if you are willing to have short term renters, you may be able to charge more....I am thinking of the snowbirds and winter visitors who like the desert climates. You could charge $1500 or more to these winter guests. Just my thought on the number game. I hope to have rental properties one day. The rental must be thought of as a business and not an emotional debt. Currently, your business is losing money. But, the possibility is there for something more to happen. Have you tried listing as a vacation rental? Could you have a furniture rental place furnish it? Vegas is a vacation destination. Thanks!! Karen I would not sell or rent for a lower price. if anything, I would rent for at least $1,000 month(if not more). You must cover the cost of the mortgage. You must also put together a savings to cover the times when the house is not rented.

The additional or savings on the rental is not to be included in your debt reduction. The rental should have its own bank account.

Also, if you are willing to have short term renters, you may be able to charge more….I am thinking of the snowbirds and winter visitors who like the desert climates. You could charge $1500 or more to these winter guests.

Just my thought on the number game. I hope to have rental properties one day. The rental must be thought of as a business and not an emotional debt. Currently, your business is losing money. But, the possibility is there for something more to happen.

Have you tried listing as a vacation rental? Could you have a furniture rental place furnish it? Vegas is a vacation destination.

Thanks!!
Karen

]]> By: jolyn http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1426 jolyn Thu, 04 Mar 2010 18:16:58 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1426 Yea, if we don't start getting bites come Spring when the market picks up I'll probably talk to our property manager again about the rent amount. We're also looking at one-month free rent, which we did the last time around as well. We actually do consider pets on a case-by-case basis, but the association has rules about the size and number of dogs/pets. All the inquiries have been about multiple, large dogs! Yea, if we don’t start getting bites come Spring when the market picks up I’ll probably talk to our property manager again about the rent amount. We’re also looking at one-month free rent, which we did the last time around as well.

We actually do consider pets on a case-by-case basis, but the association has rules about the size and number of dogs/pets. All the inquiries have been about multiple, large dogs!

]]> By: jolyn http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1425 jolyn Thu, 04 Mar 2010 18:15:00 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1425 We'd cut you a good deal! ;) We’d cut you a good deal!

;)

]]> By: jolyn http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1424 jolyn Thu, 04 Mar 2010 18:14:37 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1424 We've actually done the, "Rent or Sell" option before, and it just seems to scare off renters. I know. Bummer. We’ve actually done the, “Rent or Sell” option before, and it just seems to scare off renters.

I know. Bummer.

]]> By: jolyn http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1423 jolyn Thu, 04 Mar 2010 18:13:48 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1423 You are right about refinancing not being an option. The rate is actually scheduled to go a little LOWER starting in May, and even if the prime rate increases dramatically in the next couple of years, our rate can only be raised so much year-by-year, so we are looking at a very, very low rate for at least the next two years. That being said, I hope by that time we no longer have this house! I don't think I can stomach selling it for a loss right now. The thought occurred to me, after reading all the comments, that once we are ready to attack this mortgage in our snowball, we can probably lower the amount we owe enough to not have to sell it for less than we owe, if that makes sense. No guarantees in real estate! But I think that's pretty realistic. That means we're looking at holding onto it another two years or so, renters or no. Obviously, we're able to cash-flow the expense: We just don't like to. And odds are it WILL rent out again in that time frame. Thanks for your thoughtful input! You are right about refinancing not being an option. The rate is actually scheduled to go a little LOWER starting in May, and even if the prime rate increases dramatically in the next couple of years, our rate can only be raised so much year-by-year, so we are looking at a very, very low rate for at least the next two years.

That being said, I hope by that time we no longer have this house! I don’t think I can stomach selling it for a loss right now. The thought occurred to me, after reading all the comments, that once we are ready to attack this mortgage in our snowball, we can probably lower the amount we owe enough to not have to sell it for less than we owe, if that makes sense.

No guarantees in real estate! But I think that’s pretty realistic. That means we’re looking at holding onto it another two years or so, renters or no. Obviously, we’re able to cash-flow the expense: We just don’t like to. And odds are it WILL rent out again in that time frame.

Thanks for your thoughtful input!

]]> By: jolyn http://budgetsarethenewblack.com/2010/03/sell-empty-rental-property-at-a-loss.html/comment-page-1#comment-1422 jolyn Thu, 04 Mar 2010 18:06:59 +0000 http://budgetsarethenewblack.com/?p=1924#comment-1422 That is does! That is does!

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