Should We Sell Rental Property?
A little over a yr ago we brought a rental property in Pa from someone my husband knew. We got it for 15k and he holds the note we have the deed, we pay $500 monthly no intrest.We have payed 8K in it so far.It is a 3 1Br unit apt. bldg 6months in we found out water comes in the basemet which is their bedroom area.We thought we fixed it by putting in a french drain and making some other adjustments.It fixed one apt,but not the other 2 and because of the water we are now seeing mold.Unless we get a loan we don't think we will be able to fix it properly. (We do not have good credit we are in debt about 3k.) We will loose tenants and not want to rent it out until we are sure it is fixed. The bldg at one time was appraised at 42k.What should we do? <IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by camor51 on Date 07/29/2003 ]
If you don't want to sell it try lease option to a contractor structure in the repairs
With poor credit a second is not really an option. As one who buys distressed investment property your best bet for cash out and less headaches is to sell it.
In Ohio a 3 - 1 bdrm unit apt bldg would go for around 75k in good condition in a lower income neighborhood. If you sell it "as is" for 40k you pay off your debt and remaining payments and still clear 20k.
IMHO thats the way to go if you don't have the cash to fix it up.
Goodluck
leaky below ground floors arent to hard to solve maybe the landscape slopes toward the building instead of away to allow for proper drainage. faulty gutters,loose mortor around foundation. all these things are a breeze with the right book, or its for a beginner. dont let problems of such to ruin your investments,for you could through it away cheap trying to get rid of itthen realize how it was nothing to worrie about,just a little know ****Must Reach Senior Investor status before posting URL's***d luck.
Did the seller know of this problem and not disclose it?
Could recind the contract & demand $$ back.
Could sue for $$ to fix.
If yo see a profit, you could fix and keep on Truckin'.
Try to rent to someone who does those type of problem solving , and take it out of the rent!
Thanks guys for the advice and encouragement. We recently found a retired engineer who is willing to work with my husband in fixing the problem.He has given us a very fair price since my husband will be working with him.