I decided to rent it out rather than short sale it. The renters just moved out. I just checked the house. They trashed it!
I could rent the house out again, but I would have to spend several thousand dollars fixing it up first. What would you recommend that I do?” Richard asked.
Here was our recommendation. That is a tough situation. You could fix up the house and rent it out again. But, you risk having the same thing happen all over again.
Here is the other problem. The amount you can charge for rent has gone down in most areas. This means you may have to write a check every month to cover your costs.
If you are able to rent it and cover all the costs, then I would recommend you keep the home (remember that when calculating your costs you must include mortgage, insurance, taxes, maintenance, management, and a vacancy factor). If not, then I would recommend you short sell it.
Here is why I recommend that. If you can break even, then the house could be a good investment as the real estate market recovers. However, you will always risk large unexpected costs like the one you are experiencing right now. In keeping the house you also risk further declines in value that will make it take years longer to regain a positive equity position.
If it the rent does not cover all the costs, then more than likely you are in an area where the housing prices are still dropping. This means the burden will only get bigger as time progresses.
Costs will keep on going up. Rent might drop even more. The housing market could decline even further. If you qualify for a short sale it would be better to just get rid of the liability now, once and for all.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at Tony@HunthausenGroup.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 714-334-7808
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Huntington Beach loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.
Thanks for reading this, Tony Hunthausen.
Tony is a Real Estate Broker Associate at Remax Select One. Huntington Beach Short Sales Realtor:
Phone: 714-334-7808. Tony@HunthausenGroup.com.
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Tony Hunthausen specializes in loan modification assistance and short sales in Huntington Beach California. Huntington Beach Loan Modification Help, Huntington Beach Short Sales. Huntington Beach Short Sale Realtor
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Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Tony Hunthausen’s personal views and do not reflect the views of Remax Select One.
This information on Huntington Beach Short Sales: Renters trashed my house. What should I do? is provided as a courtesy to our viewers to help them make informed decisions.