I've really been dragging my feet on pulling up that "For Rent" sign in the front yard and replacing it with a "For Sale By Owner" sign. I am clearly too identified with it because I'm reacting as if it's a personal failure. It's not. It's more a sign of the times.
You know, when a house has been vacant for awhile the decision making process can't help but be compromised. No money coming in when you have two mortgages on the thing will do that to you. By the time a persons' choices are reduced to selling for what they owe or else let them foreclose, trust me, ones' thinking has gone through more than a few scenarios. It's not an easy thing to come to terms with, not being able to meet your responsibilities, whatever they are, is a sobering, humbling experience.
Anyway, I've decided to stop advertising the house for rent, because then I'll just be stuck with a $400 deficit every month for the length of the lease. It's way over time to start cutting my loses. I've already stopped making payments, I just couldn't justify continuing to throw money into it. I'd feel better if I could remember how lucky I am because I had time to pull all the equity out of it before the market crashed. I'd feel better if there were more money coming in period. The Presidents' stimulus package is not going to help me. I've taken training on how to process loan modifications, so I know that I wouldn't qualify for one. What has compounded the problem is that the rental market here has taken a nose dive, I have no choice but to accept the remaining options, sell or face foreclosure.
So, tomorrow I pull up the "For Rent" sign.
Sunday, January 31, 2010
Tuesday, January 26, 2010
The "For Sale By Owner" Experience
I created this blog so that I would have a place to gripe, bemoan, brag, swear and, as needed, to detail my efforts, my failures, my successes, all my experiences with buying and selling houses.
I bought my first house in 1973 (!), but, since I believe in living in the present, that's where we'll begin.
Right now I'm marketing a 2 bdrm in what's considered a desirable midtown location.
I bought this house in 2004, it's 3 blocks from where I live now. A neighbors' mother owned it and needed to sell so, I was able to get a good deal. I thought it would be great investment because my partners' mother was relocating here and would need to be close by but, that didn't happen for another two years.
No problem, I did some cosmetics and got a nice tenant right away. Everything was great for awhile, then I refinanced it and used that money to build another rental property behind where I live now. Anyway, I had no problem keeping it rented until this year! It's been vacant for 6 months!
I hate admitting that I am a victim of this declining real estate market. The rental market in my area has been flooded with houses that haven't sold. I am being undercut to death by the competition. Meanwhile, my taxes have gone up, therefore, my PITI has gone up. I was able to get $950 for the last 2 1/2 years and now I can't get $850. Did I mention that my PITI was up to $1158!
I have been biting my tongue for a long time; I think I've been in denial for the last 6 months. I had decided to offer the house for sale or lease option about 3 months ago. I started out at $150000, now I'm a month behind in my payments. I'm asking $140000 now, I figure I owe close to that. I haven't received one call on it in 3 months.
What else am I supposed to do? I have been in real estate since 1989, first as a licensed realtor then as a private investor. I have done everything I know to do in addition to everything the guru's tell you to do.
The bottom line is that I will either sell it or just give it back to the lender. My job now is not to identify with the situation. My inability to rent it does not make me a bad landlord. My inability to sell it OR keep it does not make me a bad risk. I cannot allow this to affect my judgement as an investor or it WILL destroy my judgement as an investor. It has already affected me, I'm losing my confidence when talking to a seller about buying their house.
I really need to get rid of this house, it's killing my mojo.
I bought my first house in 1973 (!), but, since I believe in living in the present, that's where we'll begin.
Right now I'm marketing a 2 bdrm in what's considered a desirable midtown location.
I bought this house in 2004, it's 3 blocks from where I live now. A neighbors' mother owned it and needed to sell so, I was able to get a good deal. I thought it would be great investment because my partners' mother was relocating here and would need to be close by but, that didn't happen for another two years.
No problem, I did some cosmetics and got a nice tenant right away. Everything was great for awhile, then I refinanced it and used that money to build another rental property behind where I live now. Anyway, I had no problem keeping it rented until this year! It's been vacant for 6 months!
I hate admitting that I am a victim of this declining real estate market. The rental market in my area has been flooded with houses that haven't sold. I am being undercut to death by the competition. Meanwhile, my taxes have gone up, therefore, my PITI has gone up. I was able to get $950 for the last 2 1/2 years and now I can't get $850. Did I mention that my PITI was up to $1158!
I have been biting my tongue for a long time; I think I've been in denial for the last 6 months. I had decided to offer the house for sale or lease option about 3 months ago. I started out at $150000, now I'm a month behind in my payments. I'm asking $140000 now, I figure I owe close to that. I haven't received one call on it in 3 months.
What else am I supposed to do? I have been in real estate since 1989, first as a licensed realtor then as a private investor. I have done everything I know to do in addition to everything the guru's tell you to do.
The bottom line is that I will either sell it or just give it back to the lender. My job now is not to identify with the situation. My inability to rent it does not make me a bad landlord. My inability to sell it OR keep it does not make me a bad risk. I cannot allow this to affect my judgement as an investor or it WILL destroy my judgement as an investor. It has already affected me, I'm losing my confidence when talking to a seller about buying their house.
I really need to get rid of this house, it's killing my mojo.
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