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.