Posted by Eric in FL on August 04, 2007 at 19:29:27:
Steven,
This is a wonderful idea if it was not in Port St. Lucie, FL. You are about to see the first south Florida wasteland since the 70’s where you could drive into a development with empty houses every where and they were giving them away. The overbuilding that has occurred is staggering. The only thing that is saving a PSP home is if you bought it right years ago and can sell on price. If you can fog up a mirror and don’t have a prison uniform on there are 100 investors ready to lease option their house to you and throw in anything you want including their first born. I’m kiiding of course but it is the worst I have ever seen it and it’s going to get evern uglier. What a great time to gear up and buy!!!
Investments are tanking: What to do? - Posted by Connie SoCal
Posted by Connie SoCal on August 02, 2007 at 23:42:08:
I need to sell a condo in Port St. Lucie because my renter left and I was negative already. There’s not much hope for this situation. Rents there are way under what my monthly is. I am having major issues. I don’t want to go into foreclosure, but if I can’t remedy this situation, there is no way I can keep paying on it.
What is the best way (least detrimental to my sanity) to turn this situation around? I bought at the wrong time, as the market turned just after I signed all the agreements to buy.
I am looking for suggestions, as I am becoming a don’t wanter, but no one can take this off my hands without me still owing $$. Should I go to the lender and plead my case?
Tax wise, I am hosed, too, as I will lose much more than the $3000 allowable per year (as a loss deduction).
Any insight into the market in FL and when it will turn back to a HOT one?
If you sell, you are not limited to $3,000. Your loss would be fully deductible against your ordinary income. A loss on the sale of a rental property is not considered to be a capital loss. It is an ordinary loss fully deductible in the year of sale.
Re: Investments are tanking: What to do? - Posted by StevenS(CPA)
Posted by StevenS(CPA) on August 03, 2007 at 09:24:47:
Connie, you need to sell this on a wrap with owner financing and take ANY downpayment they offer, make sure their credit is something you’re comfortable with and get them to make up the back payments and 2% higher than your mortgage.
You should find a number of buyers willing to buy quickly.
I would also talk to the bank and work out something with them also.
If you cannot handle 3-4 mos to get a renter and longer for a sale then I would call the lender and offer a deed in lieu of foreclosure. just spoke to a re pro in Tampa who has been picking up property left and right,which he also tells me that rents are way below going rates ($900.00 for a 300k home!) and time frames 90+ days for a renter.there is triple last years inventory on the both rental and sale markets.