Upside Down On SFR In Vegas...running Out Of $$$
Help! Any ideas, comments welcome.
My partner and I are in a mess with a brand new house in Las Vegas. Here are the details.
1. AUG 2004, we paid $445,000 for a Pulte model in the community of Aliante, North Las Vegas.
2. 100% financed and still owe roughly the same.
2. Payment is $3000/month.
3. Currently could only sell for about $360,000.
4. Finally found tenants to lease out for $1100/month in APR to reduce neg cash flow to $1900/month.
We are running out of cash quickly. We desperately need some ideas on how to get out of this house immediately.
Thanks!
short sale? deed in lieu of foreclosure?
I have a deal that was pitch to me. ~350 purchase, never lived in, on the market since 6/04 (construction completed 7/04) (was supposed to be a re-construction flip), and now the comps are in the high 200 to low 300s. and they own 317.
No opportunity, until they realize how deep the poop is.
Thanks for the reply. We are not behind in payments and do not plan to ever get behind, no matter what...foreclosure is not an option.
How is it possible that it depreciated 85K???
I read the many published articles regarding the Pulte homes in Vegas. It seems they initiated the depreaciation by droping their prices during some of the final phases. This was in order to move the homes quicker.
I also read an article regarding the incredible amount of homes that were released onto the market around this same time. It was speculated that many people just wanted to cash out all of their massive equity at the same time.
Interesting that we still hear about the appreciation in Vegas every month.
I am very sorry to hear an investor in this position, I truly hope that you are able find a solution. Of course this is always possible with precon, but very rare.
Please keep us updated to the solution that you reach. I am confident that you will prevail.
Take care,
[addsig]
"foreclosure is not an option"..
Have you ever heard of the sink hole theory?
If the propery is hemmoraging red ink, get rid of it.
Selling at a loss is better than loosing everything.
Thanks for the comments. We actually found a family member last night to partner with. They will cover our costs for a year until the lease is up in exchange for 50% ownership. Our goal is to re-fi it next year and keep it as a vacation rental for the family for the next 3-5 years.
Thanks again!
pretty creative sollution. glad to hear it worked out
It depends. $400 cash flow in a market going up seems good to me. Is the market going to continue to appreciate? Or do you suspect that things are going to slow? Do you need the money for other deals? It sounds like it is a little more work and if that is what is pushing the decision then that is up to you......
My only true suggestion is to at a minimum wait until the one year period. It is my understanding that after 12 months you are taxed as capital gains less than that it is a flip and is taxed at your redular tax status....I am not a CPA and this is just my understanding I suggest checking with a professional on that..