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Old 1 February 2018, 12:55 PM   #1
Valenciawatchrepair
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Mortgage/Financial advice.

Not sure who here can help with this, but I've had a problem for awhile with an investment property that has been nothing but a headache. Both with tenants and the mortgage itself.

I had vacant land in 2008 and had the mortgage redone to pay for a mobile home and improvements to the land. Original Loan amount $44K.

Fast forward to now, after multiple nightmare tenants, a balloon on the loan that I could not pay off(NO ONE wanted to Refinance a mobile home), and three mortgage companies later(not by choice, they kept selling it.) I still owe $40,847

Payment break down

Total Per month $230.03

Of that $230.03

$66.52 Goes to Taxes and Insurance
$128.56 Goes to interest
$34.95 goes to Principal.


I have deferred principal of $9,236.47 that was added when the balloon happened. Not to mentioned wrecked my credit, but that's another story.

I'm currently in an owner finance situation, but of course, I only have $200 from them for January which they only finally sent a few days ago.

I'm so tired of this property. But, I can't unload it. No one will loan on the home, it's a 1995 model. No one has the cash to buy it. It's in a very small town with not the greatest economy.

Add to that, I recently sold a home we were living in to get a lower payment, but because of switching to self employed I couldn't even get a loan on a lawn mower, much less a house. So, now I'm spending almost $300 per month RENTING now.
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Old 1 February 2018, 02:28 PM   #2
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Mortgage/Financial advice.

Rental properties can be a tough deal. I had several and sold them off when tax laws changed and because my work schedule made it tough to keep up on repairs. They did however cover the expense and I made a few bucks when I sold them. We have one left which we intend to keep. Try to rent it for more than 230 a month to cover the payment. Screen for a solid tenant. Talk to a CPA and see if you can write any of it off on your taxes. Have considered moving into it temporarily as the payment is cheaper than the place your renting? Perhaps do some renovations while your living in it?


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Old 1 February 2018, 04:03 PM   #3
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Leave your APT. Move in. Make it into a redneck themed glamping spot. Hire a cheap photographer to take good pictures. List it on vrbo for 125 per night includes a case of Busch and firewood
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Old 1 February 2018, 04:24 PM   #4
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I like @GB-man's idea. I google image searched your town and it looks like a very idyllic location for relaxing.

Just make it yours and try and pay a little extra until you are out of the red. Only other option it sounds like would be to voluntarily fore close, which would probably be a longer harder road. Hope you find a solution that works.
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Old 1 February 2018, 09:06 PM   #5
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Leave your APT. Move in. Make it into a redneck themed glamping spot. Hire a cheap photographer to take good pictures. List it on vrbo for 125 per night includes a case of Busch and firewood
Probably the best idea so far. Can't believe rent is so cheap there.
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Old 1 February 2018, 09:46 PM   #6
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Move into your rental unit. Put the $300 a month you are spending on rent towards principal and pay the place off.

Unless the land has any value, you'll never unload that property. A 1995 mobile can be bought for about $5K and no lender will ever finance a 20+ year old mobile for anywhere near what you owe.

Buying a mobile is a good idea if you are running a trailer park for income (and buy the units for <$5K each) or intend to live in it yourself. Otherwise, they only depreciate. It's not an investment, it's cheap housing.
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Old 1 February 2018, 10:58 PM   #7
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Originally Posted by Valenciawatchrepair View Post
So, now I'm spending almost $300 per month RENTING now.
Do you mean $3000?

Or if you really mean $300, then why not move in to your mobile home?

Edit: Looks like multiple others have already suggested that.
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Old 1 February 2018, 11:18 PM   #8
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The 2 and $300/month rent is just amazing to me. I’ve never lived in an area like that. The last place I rented was pretty much the cheapest house in town and it was $3600/month. Though it was in fine condition and in Palo Alto, and that is was over 10 years ago.
If you’re only getting 200/month on the property and you can’t affrord to cover the loan yourself, it sounds like it wasn’t the best investment. Does the land itself have any value?
I like the out of the box thinking with the redneck weekend destination. You could potentially make more in a single weekend than with your current situation. Does it have privacy, a view of something, etc?
If all else fails, move in yourself, regroup, pay down the loan as fast as possible, and figure out how dump the place without losing all you put in.
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Old 1 February 2018, 11:36 PM   #9
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Do you mean $3000?

Or if you really mean $300, then why not move in to your mobile home?

Edit: Looks like multiple others have already suggested that.
Ahh sorry. I meant I'm spending $300 MORE over the $700 we were spending. $950 is my current rent.

Another point I didn't mention. The mobile home is in Florida 300+ miles away. So, moving into it, isn't an option.

I'm supposed to get $400 a month on the mobile home. Yet, time after time it has become a problem. Like I mentioned today is Feb 1st and I do not have half of January still.
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Old 1 February 2018, 11:55 PM   #10
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Originally Posted by Valenciawatchrepair View Post
Ahh sorry. I meant I'm spending $300 MORE over the $700 we were spending. $950 is my current rent.

Another point I didn't mention. The mobile home is in Florida 300+ miles away. So, moving into it, isn't an option.

I'm supposed to get $400 a month on the mobile home. Yet, time after time it has become a problem. Like I mentioned today is Feb 1st and I do not have half of January still.
Try to find a buyer who will live there and finance it yourself. They will own maintenance and other home owner costs and pay you monthly to pay it off.

If you are self employed, why can’t you relocate to this property?
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Old 2 February 2018, 12:00 AM   #11
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You have a mortgage/interest payment of $203 a month?

What is the problem?
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Old 2 February 2018, 12:02 AM   #12
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Try to find a buyer who will live there and finance it yourself. They will own maintenance and other home owner costs and pay you monthly to pay it off.

If you are self employed, why can’t you relocate to this property?
I'm currently owner financing now.($400/month) And I have in the past. But, the level of tenants there is terrible. Starts out good, and then always has been a problem. Is it worth messing with the headache? In the meantime, I end up paying my new higher rent plus this mortgage.
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Old 2 February 2018, 12:05 AM   #13
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You have a mortgage/interest payment of $203 a month?

What is the problem?
$230. Yes. It's more the fact that, the tenants miss payments and become a giant headache. I'm now paying More rent than before myself PLUS paying this mortgage. Plus dealing with the headache. I'm using the profit of the mobile home to help pay my Rent now, because it was unexpected. I went from a smaller mortgage to a higher rent. Also, when I moved 5 years ago, my income dropped and I went self employed. Maybe I just need to suck it up? But, I'm just wondering if at this point with so little principal paid, is it worth keeping?

Also, side info: I bought the vacant 5 acres in 2005 for $25,000

Total loan for remainder of land loan, mobile home, and improvements was $44,000 in 2008. Today, this loan is still at $40,000. I doubt the entire property is worth $30,000. The area sucks. Zip code 32428
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Old 2 February 2018, 12:06 AM   #14
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Originally Posted by Valenciawatchrepair View Post
I'm currently owner financing now.($400/month) And I have in the past. But, the level of tenants there is terrible. Starts out good, and then always has been a problem. Is it worth messing with the headache? In the meantime, I end up paying my new higher rent plus this mortgage.
At that price point you aren’t getting ideal tenents. You are in the cheap seats, where paycheck to paycheck lifestyles choose gas and phone bill over rent.

At this point, paying off the debt is the priority so that you can move on. Try tightening the belt at home so that you can pay this down to where a bank will give somebody a loan to take it off your hands.
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Old 2 February 2018, 12:08 AM   #15
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Originally Posted by Valenciawatchrepair View Post
$230. Yes. It's more the fact that, the tenants miss payments and become a giant headache. I'm now paying More rent than before myself PLUS paying this mortgage. Plus dealing with the headache. I'm using the profit of the mobile home to help pay my Rent now, because it was unexpected. I went from a smaller mortgage to a higher rent. Also, when I moved 5 years ago, my income dropped and I went self employed. Maybe I just need to suck it up? But, I'm just wondering if at this point with so little principal paid, is it worth keeping?
It sounds like owning this thing is an absolute nightmare, sometimes cutting your losses is the best thing to do for yourself and your personal health.

I personally would just call it a day get rid of it take the hit and move on.
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Old 2 February 2018, 12:09 AM   #16
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Originally Posted by Valenciawatchrepair View Post
$230. Yes. It's more the fact that, the tenants miss payments and become a giant headache. I'm now paying More rent than before myself PLUS paying this mortgage. Plus dealing with the headache. I'm using the profit of the mobile home to help pay my Rent now, because it was unexpected. I went from a smaller mortgage to a higher rent. Also, when I moved 5 years ago, my income dropped and I went self employed. Maybe I just need to suck it up? But, I'm just wondering if at this point with so little principal paid, is it worth keeping?

Also, side info: I bought the vacant 5 acres in 2005 for $25,000

Total loan for remainder of land loan, mobile home, and improvements was $44,000 in 2008. Today, this loan is still at $40,000. I doubt the entire property is worth $30,000. The area sucks. Zip code 32428
Sounds like it's not worth keeping.

Did you say your credit is already ruined, if so just walk away from it.
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Old 2 February 2018, 12:11 AM   #17
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It sounds like owning this thing is an absolute nightmare, sometimes cutting your losses is the best thing to do for yourself and your personal health.

I personally would just call it a day get rid of it take the hit and move on.
Yes it has. In the past I have had multiple rental tenants that absolutely destroyed the place inside of a year. It was a 1995 Model that was very well taken care of. My family and I lived in it one year. Decent place for it's age. After we moved out, the place was never the same. One rental tenants years ago had animals...well, basically using the carpet as their litter box/bathroom. I wanted to torch the place. It was a nightmare.
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Old 2 February 2018, 12:12 AM   #18
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Sounds like it's not worth keeping.

Did you say your credit is already ruined, if so just walk away from it.
It was, I've since repaired it on my own. Back up to 679 to date. I was PERFECT. Then brought down to low 500's.
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Old 2 February 2018, 12:18 AM   #19
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$230. Yes. It's more the fact that, the tenants miss payments and become a giant headache. I'm now paying More rent than before myself PLUS paying this mortgage. Plus dealing with the headache. I'm using the profit of the mobile home to help pay my Rent now, because it was unexpected. I went from a smaller mortgage to a higher rent. Also, when I moved 5 years ago, my income dropped and I went self employed. Maybe I just need to suck it up? But, I'm just wondering if at this point with so little principal paid, is it worth keeping?

Also, side info: I bought the vacant 5 acres in 2005 for $25,000

Total loan for remainder of land loan, mobile home, and improvements was $44,000 in 2008. Today, this loan is still at $40,000. I doubt the entire property is worth $30,000. The area sucks. Zip code 32428
You paid $5k per acre in Chipley?

I’m with Mon. Since your credit is trashed and the location is bad, give it to the bank and walk away.
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Old 2 February 2018, 12:24 AM   #20
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I found selling my rental units very tough. Its like trying to sell a job that has no pay.

I would clean it up as good as possible and put it on the market For Sale with no one living in it.

Having said that, Good Luck my friend whatever you decide.
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Old 2 February 2018, 12:57 AM   #21
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Ahh sorry. I meant I'm spending $300 MORE over the $700 we were spending. $950 is my current rent.

Another point I didn't mention. The mobile home is in Florida 300+ miles away. So, moving into it, isn't an option.

I'm supposed to get $400 a month on the mobile home. Yet, time after time it has become a problem. Like I mentioned today is Feb 1st and I do not have half of January still.
It's seller/owner financed - I would tell them you are done with the property and they are beat. I doubt they will go through the expense and legal hassle of taking you to court over it.

Mail them the keys and be done with it.
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Old 2 February 2018, 01:41 AM   #22
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Kick out the tenant you have in there right now. He isn’t paying you and will further depreciate your asset. Put some lipstick on the place and advertise it for rent with the caveat “rent to own”. I don’t think a mobile home in that town is in high demand. You need to stand out. Give someone the chance to own a home for short money and no bank loan requirement. Aside from that a fire or just surrender the loan like mentioned above.
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Old 2 February 2018, 01:49 AM   #23
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Kick out the tenant you have in there right now. He isn’t paying you and will further depreciate your asset. Put some lipstick on the place and advertise it for rent with the caveat “rent to own”. I don’t think a mobile home in that town is in high demand. You need to stand out. Give someone the chance to own a home for short money and no bank loan requirement. Aside from that a fire or just surrender the loan like mentioned above.
A fire is arson, which is a felony. Hopefully, you were joking.
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Old 2 February 2018, 03:12 AM   #24
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I have an old friend who had a home he was over extended in back in 2010 (1mm+). At the same time he took a large pay cut at work. To keep it, he was juggling 5-6 roommates at a time. He decided it was worth the freedom to short sale his residence and move into a basement at a friends. Fast forward 6 years later and he is married, has a great job with two little ones and a new beautiful home. He has mentioned it was a great choice for him to get out from under the pressure of his debts and credits that to his current professional success. It liberated him to move on with his life.

I normally wouldn't advocate for "defaulting" but you've explained your options are very slim and the property is over-financed at this point.
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Old 2 February 2018, 05:14 AM   #25
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Old 2 February 2018, 05:42 AM   #26
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I would buy the deadbeat tenant out (so he doesn't trash the place) and move into the trailer. I would stay there until you can show 2 years of self employment income and hope you're credit scores improve. Then I would try to sell it and hopefully you'll be able to obtain financing for something else at that time. Good luck!
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Old 2 February 2018, 06:24 AM   #27
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I would buy the deadbeat tenant out (so he doesn't trash the place) and move into the trailer. I would stay there until you can show 2 years of self employment income and hope you're credit scores improve. Then I would try to sell it and hopefully you'll be able to obtain financing for something else at that time. Good luck!
My wife would hate me if I moved her back down there and stuffed us and the 3 kids in that place. But, that idea looks REALLY GOOD on paper. lol
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Old 2 February 2018, 06:31 AM   #28
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My wife would hate me if I moved her back down there and stuffed us and the 3 kids in that place. But, that idea looks REALLY GOOD on paper. lol

I've been in residential mortgage lending for a long time and this is what I would recommend.
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Old 2 February 2018, 07:26 AM   #29
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I've been in residential mortgage lending for a long time and this is what I would recommend.
Wife just got back in. We're discussing it. Also all other options. Thanks for all the help everyone.

Also, considering what I've paid in in the past and adding to that the current balance of $40,000. Is it worth it to pay this off in the long run? Living in it would be cheaper per month. But, in the end, I would probably be spending something like $60K total on a property worth MAYBE $30,000-$40,000 if that. Waiting on a call back from a realtor in that area to get prices per acre that have recently sold or are on the market.
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Old 2 February 2018, 09:14 AM   #30
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Would you be able to share more information about the property (address, pictures) ?
I'd be happy to get them into my inbox if you are uncomfortable with advertising it here.
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