Need Advice On First Purchase-PLEASE!
Purchased my first investment property for 74k. Some closing costs were financed so loan was for 76k. FMV is 117k. I did some minor repairs and planned on holding as a rental. But as my first purchase, I decided that I did not want to go through any further repairs and deal with finding a tenant. I am not ready to be landlord until further down the line. I know that I'm sitting on 40k in equity, but I need a way to get out of the responsibilities of ownership and also get some cash out of this home. If I sell now I got to pay a 6 month pre-payment penalty(house was purchased in 2/04), Honestly, I want 20k to 30k out to move on to other investment deals so I'm not ready to pay the c.g. taxes, plus I would need to complete all the repairs if it's sold conventionally.
What are my options? I'm too new at this to know of all the creative ways I should be thinking. Is there something someone else sees that I can do?
I'm unsure why this qualifies to be in the foreclosure forum, but you could sell it sub2, or find an investor that will take it sub2. Maybe you can get some cash up front out of it and then you wouldn't have to worry about the prepayment penalty. I'd do some reading up on the topic. There's an entire forum here devoted to the topic. Read there, or buy John Locke's sub2 course. Which ever way you go, learn more about it before you go doing it. I'd say if you had done that originally you probably wouldn't be in this boat now. Don't take that as a personal attack, but really know what you're getting yourself into before you put your own credit and name on the line.
Ryan J. Schnabel