I own a rental property for 6-7 years and always has a negative cash flow. I kept having this rental property to use as a tax deduction, and I have no house mortgage. I live in a house that already paid for my parents, who live overseas. I bought this house rental $ 295,000 and $ 60,000 per seat. The current home value is $ 207,000. I still owe about $ 213,000. My mother is going to give me $ 100,000 to make the mortgage, so I owe $ 113,000. The mortgage company will Modification Recast for $ 250 if I put more money (at least 10% of the unpaid principal balance) at first. Consolidation is a process where the lender to calculate the portion of principal and interest on the loan, keeping the same interest rate and the rate of the same maturity. My original loan is 30 years at 5.62% This fix will bring down my mortgage of $ 1,358 to $ 724 per month. This means you'll save $ 634 per month. I got $ 1200/month rent for three years, and $ 1,600 in the past year. Insurance, HOA, and property tax is $ 400/month. I have to be able to rent the house for $ 1,758 to cover expenses. However, it still has a negative cash flow. I talked to friends, and there are two opinions. One group said that $ 100,000 first place because he refuses to leave the property. I can afford the difference. Thus I have to worry about finding the rent if the rent is comparable to the house, in the neighborhood that are renting to a lower price, ie. $ 1,400 - $ 1,500. Another group of friends told me not to put more money down mortgage since I owe more than it is worth now. They said they can put $ 100,000 in a better and nicer house and renting more money. My mother is half mill. in cash and $ 100,000 that she wants to help me win by 0.5% today at the bank. I do not know which way is better. Should I put more money into a rental house upside down I did not want to move away from it (do not want to lose $ 60,000 down payment. I will continue until the price gone who knows what will be the next 10 or 20 years. Incase of shaking of the earth, and my home fade, I'll probably lose my down payment plus the $ 100,000. What if the housing market is getting worse and my holiday home worth $ 150,000? probably let go $ 100,000 that my payment. If the housing market is stable or improving, it probably will not hurt so much. earthquake ground I have insurance too. My tenant will leave in June. I'm getting ready to rent my house $ 1,400 if I too. Thanks for reading. Their comments are appreciated.
I would use the government to help with the reverse mortgage . There is a new government subsidy for people with these loans backwards. I think you have to be to 125% of current market value . What it does, but can not be able to find a loop hole , or borrow a second mortgage , enough to make 125% . Next, the second mortgage can be served by the grant and then use that money to pay your first mortgage .
As for the property. I would not use the money to mothers to put on something that has a negative cash flow . It is doubtful that the market will change soon . If you want to do something with their money mothers should invest in vacant land , because that's the only real property that is still going up in value.
Homes and apartments will become a new direction before they see appreciation again. They will go to sustainable housing before they go in the right direction again. If you take a close look at the housing industry , heating homes with solar electric , solar and passive solar heating are less affected by the economy. Many who have maintained their value , because there is no money, there's plenty to do in utility bills , which is good for the buyer . Less money going out to public services means more can leave the house .