Housing decision...what to do???? - Chicagoland Sportbikes
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post #1 of 63 (permalink) Old 06-14-2010, 01:31 PM Thread Starter
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Housing decision...what to do????

As we all know the housing market sucks balls. I am trying to sell my condo since i've started my job out in Cali and in the month its been listed i only had one person though it.

Since then many short sales have came up on the market eroding. What would you do in this situiation.

Bought the condo for $226k
Right now I have it listed for $199 with no interest.
Comparable condos are listed at short sale for $169 to $229.
I owe $160 on it.

Do I sell it for $170-$180, take the $50k loss and walk away with $20k equity.

Or do i try to rent it out for the next 5 years hoping i can keep a renter in there and hope the market comes back?

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post #2 of 63 (permalink) Old 06-14-2010, 01:33 PM
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post #3 of 63 (permalink) Old 06-14-2010, 01:34 PM
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Walk away, unless you have too much time and money on you hands.

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post #4 of 63 (permalink) Old 06-14-2010, 01:39 PM
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Rent it.
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post #5 of 63 (permalink) Old 06-14-2010, 01:46 PM
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Sell it and walk away with what you can get right now. Sell in a bad market, buy in a bad market. You never know what is going to happen. Things could start to get better or more short sales will come up and drive the prices even lower.
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post #6 of 63 (permalink) Old 06-14-2010, 01:48 PM
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Being so far away, renting would be tough. Any issues would be a PITA unless you have someone here that you can trust to run the place.

If you can afford it, no reason not to keep it and rent for close to your mortgage payment.

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post #7 of 63 (permalink) Old 06-14-2010, 01:48 PM
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If no rush rent it as you have family here right to help with any situations that might arise?

If not then maybe take a loss and move on.


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post #8 of 63 (permalink) Old 06-14-2010, 01:48 PM
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Refi to the lowest possible rate on a 30yr and rent it....
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post #9 of 63 (permalink) Old 06-14-2010, 01:53 PM
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Just FYI Steve, I have been looking at housing in ur area as I am buying soon and I hate to say it but if you sell now I think the most you get will be about 160K. If you can hold on to it.
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post #10 of 63 (permalink) Old 06-14-2010, 01:54 PM
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You may want to rent it. I just read an article in yesterday's Chicago tribune about how the rental market downtown is booming. They were saying since lending requirements are strict now, people are just opting to rent instead and looking for nice places downtown to do so. People are paying crazy amounts of rent for small places. You could make some money on this and pay even more of it off in a few years than if you just keep the rent equal with the mortgage payment.

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post #11 of 63 (permalink) Old 06-14-2010, 01:57 PM
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for the least of headaches just sell the freaking thing and if you make ANYTHING from it, consider it a good time while in this area and move on.

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post #12 of 63 (permalink) Old 06-14-2010, 01:59 PM
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Rent it.

Where is it?

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post #13 of 63 (permalink) Old 06-14-2010, 02:00 PM Thread Starter
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Re: Housing decision...what to do????

It's in university village right by uic.

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post #14 of 63 (permalink) Old 06-14-2010, 02:05 PM
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Same boat here - we have considered it as well.

Just remember if you're place is anything like ours how easy it would be for someone to do 5-10k or much more in damage. Wife and I live in a party neighborhood and you live in a college party neighborhood, so think about your tenants and how much redoing floors, cabinets etc may run you - and how hard it will be to get anything more than a security deposit back.

Last edited by iamnotgreg; 06-14-2010 at 02:08 PM.
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post #15 of 63 (permalink) Old 06-14-2010, 02:05 PM
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Rent it.

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post #16 of 63 (permalink) Old 06-14-2010, 02:07 PM
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Quote:
Originally Posted by Drama View Post
It's in university village right by uic.
med student rental dooooooooooo eet

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post #17 of 63 (permalink) Old 06-14-2010, 02:07 PM
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Quote:
Originally Posted by catwlights View Post
med student rental dooooooooooo eet
in that case..yes rent it.



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post #18 of 63 (permalink) Old 06-14-2010, 02:17 PM Thread Starter
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Yeah if I can get a hot DR chick in there it would be awesome.

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post #19 of 63 (permalink) Old 06-14-2010, 02:20 PM
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I personally would be doing everything I can to rent it. 50k loss would be a hard pill for me to swallow

Eric
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post #20 of 63 (permalink) Old 06-14-2010, 02:24 PM
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LOTS of considerations for renting the unit....you likely would want to look at a management company if you're going to live that far away. There can be a lot of liability and responsibility to renting...

If you owe $160k, I would take what you can get...especially if you can break even, and buy an upgrade in a bad market.

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post #21 of 63 (permalink) Old 06-14-2010, 02:26 PM
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Quote:
Originally Posted by Maynard View Post
I personally would be doing everything I can to rent it. 50k loss would be a hard pill for me to swallow
It is not really a loss, if I read the op correctly, he will still be taking ~$20K home. Ofcourse that is not as much profit as he'd like, but you just don't know when the market will turn around and if and what kind of renter he'll get.

Greg

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post #22 of 63 (permalink) Old 06-14-2010, 03:36 PM
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what you could do is pay your facility engineer friend to be your property manager, lets say 1500 a month, heck forget paying him, he will just live there in lieu of payment.

But seriously rent it. and if you want someone to manage it( which would be smart), let's talk.




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post #23 of 63 (permalink) Old 06-14-2010, 03:42 PM Thread Starter
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Quote:
Originally Posted by HDTony View Post
But seriously rent it. and if you want someone to manage it( which would be smart), let's talk.
Yeah but i don't trust you

Steve
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post #24 of 63 (permalink) Old 06-14-2010, 03:43 PM
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I rent my house out in OK. Sometimes it is a serious pita but I gotta do it. Pay someone to manage it for you and make that someone a person you know.

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post #25 of 63 (permalink) Old 06-14-2010, 03:43 PM Thread Starter
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Quote:
Originally Posted by CerkMX View Post
If you owe $160k, I would take what you can get...especially if you can break even, and buy an upgrade in a bad market.

.02

Yeah out here in Cali in the neighborhood i like has places that were selling for $1.2M foreclosed on selling for $600k.

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post #26 of 63 (permalink) Old 06-14-2010, 04:05 PM
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Bear in mind that if your contract price is $160k, after realtor commish & covering some closing costs (something you will have to do to sell in this market), you will only net mid $140s.

You would need a selling price of $180ish to net your $160. If you come down on your asking price from 200 to 180, people will probably be offering $160.

Unless you are ok eating the loss, I'd try to find a tenant. Whatever you do, if you are buying out in CA, get that deal closed before you ever let a payment here become late. Not suggesting you walk away, but if it has to happen, time it wisely & take terms on the new loan so you would not need to refi anytime soon.

One more tidbit, many loan programs won't count your new rental income in your debt ratio because you have no history of receiving it. Keep that in mind as you shop for new digs.

Last edited by Troy; 06-14-2010 at 04:07 PM.
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post #27 of 63 (permalink) Old 06-14-2010, 04:09 PM
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Quote:
Originally Posted by Troy View Post
Bear in mind that if your contract price is $160k, after realtor commish & covering some closing costs (something you will have to do to sell in this market), you will only net mid $140s.

You would need a selling price of $180ish to net your $160. If you come down on your asking price from 200 to 180, people will probably be offering $160.

Unless you are ok eating the loss, I'd try to find a tenant. Whatever you do, if you are buying out in CA, get that deal closed before you ever let a payment here become late. Not suggesting you walk away, but if it has to happen, time it wisely & take terms on the new loan so you would not need to refi anytime soon.

One more tidbit, many loan programs won't count your new rental income in your debt ratio because you have no history of receiving it. Keep that in mind as you shop for new digs.
20K is only if he is being raped by his realtor. 10K more likely, but point taken.

Greg

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post #28 of 63 (permalink) Old 06-14-2010, 04:12 PM
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i'm in the same boat as well with a NW side condo. believe me, i know how much it sucks. IMO renting it out is the best option, since lots of people can't get loans anymore or simply don't trust the market enough to buy. just make sure you do a thorough background check on the new tenant and ask for references.

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post #29 of 63 (permalink) Old 06-14-2010, 04:16 PM
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Side note - what would be the rental income? How many hundred per month would it be + or - the mtg and taxes?

I have a few friends renting out right now for 500$ a month less than the mortgage, factor how long it will take for the market to come back to cap on that as well.

Also subtract 10% or 1 month per year for an agency to fill it for you
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post #30 of 63 (permalink) Old 06-14-2010, 04:22 PM
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Big PITA unless you have a property manager.

If housing double-dips you are exposed.

With the number of condo's in chicago, it will likely take a long time for the market
to come back where you would make real money


I would say, bail now, keep what you can and move on.


Tom

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