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Home > Archive: May, 2012

Archive for May, 2012

I'm back... with a question.

May 31st, 2012 at 08:16 am

So, life has been quite hectic these past few months as we have been super busy in the renovation of our "short sale" house but it's coming along so nicely!

On the other side of the fence in "not-so-good-news-land":

-had a purchase offer on the house; buyers withdrew before we could even consider accepting it or countering it Frown

-2 weeks later we received a lease option offer on the house; again, buyers withdrew before we could even consider accepting it or countering it Frown

Our listing contract ends on June 30 and we are seriously considering throwing in the towel and just try to rent the house out instead. We've been trying to sell the house for 4 years now! The feedback we've received from every realtor that has walked through the doors have been so positive, i.e. great price (even as we've reduced it several times), great location, great house in general, yada, yada. So, what's the deal??!!

In researching our option to turn the house into a rental property, this is what my CPA has told me:

Since we would be selling at a loss anyway, he advises that turning it into a rental property right now might not be such a bad idea. We could then start deducting depreciation and other expenses. Our mortgage payment is currently $1600 monthly. He advises us to try to refinance it to get a lower monthly payment as the house would probably only get $1200 to $1400 in rent so that we could break even.

Given that we are planning on moving into our "short sale" house sometime at the end of July, we need to make some decisions regarding this house. What do you guys think? Apparently we are stricken with just plain ol' bad luck on this house but we aren't alone... a co-worker has been trying to sell her spec house that they built for the same amount of time (4 years) with no luck either.

Any words of wisdom out there for me?