know when to hold em?
November 9, 2012 9:34 AM Subscribe
Ways to mitigate renting underwater property at a loss?
posted by sweet Annie Rich to Work & Money (11 answers total) 4 users marked this as a favorite
Bought a condo in NV during the bubble as our primary residence - currently owe let's say 150k, recently refi'd to below 4% (FHA). Nine years later, comps sell for $50k and the community has a 30% foreclosure rate and a high proportion of renters who make continuing to live in the condo undesirable.
Our monthly costs run around $1000 (not taking into account potential rental property insurance or other management costs). We could rent the place for $800 at the most. We are not at all eager to be landlords.
We do not have any hardships to justify a short sale. Have only very modest cash reserves, student loans and a small car loan but no substantial consumer debt.
Are there any tax benefits to renting for a loss? Are there other strategies that you would recommend? YANML and we intend to consult one. Thanks for any insight!