Solve a Problem w/Investment Property

Asked by Nisha, Laguna Vista, TX Mon Apr 8, 2013

I have a rental property in San Antonio, TX. For a variety of reasons, I would like to sell it - either to an investor or to a homeowner. It is currently leased = until end of Aug 2013. Right now, b/c my home equity loan is at such a high rate (almost 10% from 2007), there is negative cash flow in the property. I can't refi given LTV ratio issues for investment properties and given that I want to sell asap, wouldnt recuperate my closing costs, etc. But a new owner could purchase, take advantage of the much lower interest rates, and have a positive cash flow. How do I find find such an investor? Any ideas?

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Louis Rubiola, Agent, San Antonio, TX
Mon Apr 8, 2013
I would need to know the location of the property to verify its resale and desirability before I could answer your question.
0 votes
Christine H…, Agent, San Antonio, TX
Mon Apr 8, 2013
Any investor or prospective home buyer will look at buying a home in the same manner as you do – is it a good investment for me. If the buyer has good credit, then they will be able to take advantage of stellar low rates and terms. Have you checked to see if you can renegotiate the terms with your current lender or shopped around with other lenders? Just because it is an investment property doesn’t mean you can’t get a new loan.

However, the real issue here seems more to be that you might be under water with your current loan to value and that would mean you would need to negotiate a short sale with your note holder for the house. They would have to approve the sale based on your financial situation. To do this, you will need to work with a real estate agent and company who has a history of completing, not only listing short sales.

In addition, since you currently have a tenant on a lease, that lease remains in effect until it runs out or you both mutually agree to terminate it. Most homebuyers don’t want to deal with someone else’s tenant. Of course that may not be an issue at all with an investor.
0 votes
Josh M. Boggs, Agent, San Antonio, TX
Mon Apr 8, 2013
Hello Nisha,

We run into this all the time as San Antonio's largest short sale team and co-founder of the Real Estate Investment Club of San Antonio. You have a few options and one would be to possibly take advantage of the HARP 2.0 and turn the house profitable again if you have a hardship? The LTV is not considered and only major factor considered is mortgage history and credit score > 620.

How long have tenants been in there? Rental market is certainly hot enough for a possible rent increase or higher paying tenant? How much are you subsidizing? What's estimated cash flow at current rate? Have you done those numbers?

We'd love to talk further if you're serious in getting out of this pickle. We're here to help.

God bless,

0 votes
strike that... just saw you said "HEL"... HEL does not qualify for any HARP or HAMP. Have you done a financial calculator on the property?
Flag Mon Apr 8, 2013
Jose Novelo, Agent, San Antonio, TX
Mon Apr 8, 2013
What is the address? I might have a buyer right now for your property.
Please let me know at :
Jose L. Novelo
0 votes
Priscilla Al…, Agent, San Antonio, TX
Mon Apr 8, 2013
I come across this situation reguarly. You can list it and show it with your tenant's permission or if your tenant prefers not to show it until the time you have agreed to in you leasing agreement, it can be for sell with no showings. This will make it very hard to sell quickly.

Personally I have never found a tenant to be uncooperative. Many times your tenant would like to purchase the home. Have you tried that yet? There are several options and I would be happy to go over each and everyone of them with you. Just contact me by email or phone: or 210-215-7440.

Make this a great day!
0 votes
Bruce Lynn, Agent, Coppell, TX
Mon Apr 8, 2013
List it with an agent as an investor property and sell it with the tenant in it.

No showings until you get a contract.

There are investors who want to buy properties that are leased already.

Makes sense for all parties involved.
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