U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Renting
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-29-2010, 12:59 PM
YAZ YAZ started this thread
 
Location: Phoenix,AZ
7,188 posts, read 12,316,473 times
Reputation: 6487

Advertisements

We had this great idea of buying this great house and renting out our little condo, thinking that we'd sell later for at least the amount we owed. We're so upside down on it that it's pathetic.

It's not working.

First tenants trashed the place after 3 months of living there. After a lot of elbow grease and 2 months, we managed to get the place habitable again.

We have some nice tenants that we like....they keep the place clean & tidy, but they can't seem to pay the rent on time. Now, they manage to come up with about 50% of the rent 3 weeks late. We don't even charge them what it costs to keep up with the mortgage and HOA. Basically, we lose $250 per month while they're living there IF they pay in full on time.

There's no way in this market they we could charge what the monthly expenditures are for keeping this place.

It is a liability and by no means an asset.

It's our fault. We made a big mistake.

Now what?

Short sell the condo?

Short sell the house?

Foreclosure? House or condo...

This is causing incredible stress on us.

Any ideas?
Reply With Quote Quick reply to this message

 
Old 01-29-2010, 01:04 PM
 
Location: MN
761 posts, read 3,128,745 times
Reputation: 442
Yaz,

I am in your same situation with just buying a house and renting out our condo. I have the same tenant from day one of renting. We started the lease March of 09. We are meeting up next week to resign another year lease. It sounds great and all, but getting used to the whole process is tough. The tenant has been late a few times this year, and those 3-4 days for me were very aggravating. It still hasn't really sunk with us yet, though we can afford to have it sit, we wouldn't want it to.

It is still very new to us, but you have to be firm with them, remember it is a business relationship, pay up or evict. Hopefully it will get better for you. Our rent income covers the mortgage for the place though so the situation is a bit different.
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 01:11 PM
YAZ YAZ started this thread
 
Location: Phoenix,AZ
7,188 posts, read 12,316,473 times
Reputation: 6487
I'm feelin' bad cuz they have 2 kids and he's out of work.

But we're financially strapped to the point where worry and anxiety are part of our daily routine. I like to help folks but we're digging a big hole for ourselves that has to stop.

What a mess. This is gonna be brutal.
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 02:07 PM
 
Location: 39 20' 59"N / 75 30' 53"W
16,082 posts, read 24,984,742 times
Reputation: 18056
The tenants keep the property showable, sell the condo. Your already losing money even if you put a new tenant in there that pays on time....what happens when you have an expensive repair? On the other hand the economy is starting to recover it may be slow, but it is improving.
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 02:22 PM
YAZ YAZ started this thread
 
Location: Phoenix,AZ
7,188 posts, read 12,316,473 times
Reputation: 6487
Trying to short sell a home with tenants in there is gonna be impossible.

We'd have to evict 'em.



We are gonna pay for this.

Dearly.

I'm thinkin' foreclose; at least our tenants will have a place to stay for 6 months or so....rent free, of course.

We'd have to pay the HOA fee.....at least THEY won't be comin' after us after all is said & done.

No way in Hades that the economy will bounce back enough in the near future to save us.

We owe $90k on a rental that we MIGHT get $40k for.

We owe $137k on our home that we MIGHT get $90k for. We pay almost the same to live in our house as we would to live in our condo. Moving back to the condo would just be an added expense; it wouldn't benefit us. Not to mention that our lifestyle is much better here. Plus in the long run, the house will "tend" to have more value. So dumpin' the house would be kinda dumb.

I wish our tenants could have paid on time, every time.

I will never be a landlord again.
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 03:25 PM
 
80,218 posts, read 78,558,296 times
Reputation: 56723
i say it all the time, landlording is great, that is until its not....

after over 20 years of doing it we are winding the business down.. i would never be a landlord again either... to many other ways to make money with less grief.
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 03:53 PM
 
Location: Seaford, Delaware
3,482 posts, read 17,918,451 times
Reputation: 2659
I have a duplex i am selling. I reduced the rent in one unit for a long term tenant with the understanding that it be shown to prospective buyers. The other unit will be shown with an offer and pending inspection. It's one way to sell and keep the property occupied. I'm not desperate to sell and can wait until the right person comes along and wants to buy it. Maybe you can do that and keep some income coming in. talk to a realtor and arrange it.
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 03:58 PM
YAZ YAZ started this thread
 
Location: Phoenix,AZ
7,188 posts, read 12,316,473 times
Reputation: 6487
Quote:
Originally Posted by mathjak107 View Post
i say it all the time, landlording is great, that is until its not....

after over 20 years of doing it we are winding the business down.. i would never be a landlord again either... to many other ways to make money with less grief.
We were only going to do it for a short time anyway. Rent it out until we reached an equilibrium with owe vs. sale price. We didn't buy it to make money, nor rent it out to make a buck either.

We just found a great deal on a home last year and "thought" it was a good time to buy. It seemed right. It wasn't.

Our mistake.


Our first tenants' rent covered the mortgage and HOA fees but that's it. But after three months, they left a big mess. The tenants we have now are great folks, but with "Mr. Tenant" being out of work, we can't cover them. They try so hard.....
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 04:00 PM
 
2,395 posts, read 4,673,227 times
Reputation: 4266
What the heck is with these people who rent an apartment trash it? I just don't get it. I grew up in rental apartments, I live in one now and it's my home. I wouldn't dream of "trashing" it, not cleaning it or whatever it is that people do.

I'm sorry to the landlords out there who have to deal with these pigs. There are those of us who rent and take care of the place as if it was our own.

OP, I hope your situation resolves in a way that is good for you.
Reply With Quote Quick reply to this message
 
Old 01-29-2010, 04:07 PM
YAZ YAZ started this thread
 
Location: Phoenix,AZ
7,188 posts, read 12,316,473 times
Reputation: 6487
Quote:
Originally Posted by ShaneSA View Post
I have a duplex i am selling. I reduced the rent in one unit for a long term tenant with the understanding that it be shown to prospective buyers. The other unit will be shown with an offer and pending inspection. It's one way to sell and keep the property occupied. I'm not desperate to sell and can wait until the right person comes along and wants to buy it. Maybe you can do that and keep some income coming in. talk to a realtor and arrange it.
That's a great idea!

Our tenants are on a month to month lease and we could put it up for a short sale. They already "enjoy" a relatively low monthly payment though. We are eating $250 per month on this liability.

This stinks cuz we gotta tell 'em that they have to leave.


I should add that my wife had to go on a medical disability recently. Something has to give.....
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Renting
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top