Posted by SWisemer on September 23, 2003 at 11:59:41:
Hey, I am so new to this, and now I think I’m in trouble – I need some advice! I got a rental house about 1 year ago (as result of my divorce), along with a tenant. The tenant moved out, and I have put about $2,000 of my own money into the house (for repairs). The loan is a HELOC, at .15% over prime for the entire amount. A realtor did a CMA on it 6 months ago, and the value was $116,000. My loan is at $107,000. If I sell it, I will make nothing, and will lose $, especially with depreciation recapture. If I continue renting it, I can pay about $300 towards principal each month. This is good, but who knows how much the prime will go up. The truth is, I don’t have the inclination to go thru the tenant screening and be a landlord. Should I (a) sell the house at a loss for whatever I can get (keeping in mind the prime will eventually go up), (b) find a renter and keep paying down the principal (even if I have to hire a property manager)? I would like to make some money, especially after I’ve put $2,000 into it. Thank you for you help.