|Posted by: tonyandrose Dec 9 2004, 12:16 AM
| The facts:
I own three vacant residential homes in good neighborhoods
1)CMA 90k mortgage 45k (has been a rental for two years)
2)CMA 135K mortgage 104K
3)CMA 195K mortgage 175K
with current mortgage payments of $2565 PITI
and my current residence
4)Appraisal 252K mortgage 110K with $1345 PITI
this all as a result of getting married this year. My credit score 580+/-, my wife's 710+/-. Combined monthly income 10K+/-. Low consumer debt.
I would like to know if there is a Property transaction that could swap all this debt and property for a piece of income producing property? If so, what is it called and who are the type of people I need to talk to.
Or do I just need to slog through selling all three properties in three transactions and dealing with all that paperwork?
Thanks a bunch
|Posted by: loanuniverse Dec 9 2004, 01:41 PM
It could be possible to do a swap with someone, but the problem here is one of matching the two parties. In essence, you would have to find someone that owns an income producing property that you like. This person would also have to be interested in the properties that you own. We have not even begun to talk about how the value of each of the properties involved would be assessed, the other party would probably require appraisals instead of relying on market analysis, and you should do the same for his property.
In addition, how do you get around the transferring of title? Loans have provisions prohibiting the transfer without getting paid off. The more that I think about it the more complicated it gets.
Frankly, I think that selling the properties is your best bet. The selling expenses and possible discounts in price that you might have to give will probably shrink that equity down a bit, but that $30K of negative annual cash flow that you have hitting your pocket is already doing some damage. Unless you can actively work on getting some tenants and bring the cash flow to breakeven at least, I would say selling seems to be your best option.