In Need Of Some Legal Help
I am in a position where I have gotten screwed and now have 12 properties under my belt as rentals but they all negative cash flow but 1. I am current on all my mortgages and payments owed.
Is it better to just let them all go into forclosure except the one that has positive cash flow OR declare bankruptcy?
If i do declare bankruptcy will they be able to take my home that i live in and my vehicles?
Consider selling your negative cash flow properties to your tenants on Contract For Deed. Offer 95% financing at 5% above appraised value, at interest rate 2 points above what you are paying, and have the loan balloon in two years.
If a tenant goes for the deal, you have converted a negative cash flow to a positive and transferred all the responsibilities of ownership (and upkeep) to your tenant. You get an upfront down payment, positive monthly cash flow on the interest rate spread, and a larger payday when the balloon comes due.
If you get just half of your tenants to take you up on your offer, I bet the income will cover your negative on the remaining properties and put you in the black overall.