Posted by DJ Busch on November 14, 1998 at 23:26:28:
It looks like you’re in a pretty favorable position with this property. Here’s the way I would look at it…
You’re into it for about $42K…and it’s worth about $75K. That’s $33K in equity staring you in the face. So what to do? Get a home equity loan. With that much equity, just about any lender would probably jump at the chance to lend you $42K on it. This consolidates your bills into one, and a lower one, I’m guessing.
So now that you’ve got that single payment, you need to get it paid every month, right? Okay. Now would be a good time to look into Lease Optioning the property. I realize you would rather hold on to it, but chances are your renter won’t excercise his/her option, and you’ll have made the money anyway. Even if the option is excercised, you still win. In the meanwhile, for the next few years, you’re making a monthly positive cash flow and you’re not bothered with management hassles. This way, you’re free to go out and find more deals, and all the while the money keeps finding its way to your mailbox.
Pretty darn nifty if you ask me.