WWYD

saschaduran

I inherited a duplex outside of Detroit. It is very old, in need of repairs, and in a bad neighborhood where everyone is unemployed or drug addicts. It is nearly impossible to get paying tenants. I have one that pays on time and the other that pays a little here and there and is very behind, but they take care of the house and do not hound me to fix things. All the other tenants have turned it into a halfway house so I almost prefer the lateness to the struggle of getting someone new. With the mortgage and escrow I lose about $300-400 a month when one tenant doesn't pay. I only owe about $30k, but from what I hear the house may be worth less than that now. Would you keep the house in hopes of it being back up to $100-150k one day and having the money for retirement, or do you sell it, break even and get rid of the hassle?

jajph1974

I'd get rid of the hassle. Let it be someone else's problem.

shagadelk7

I watched a documentary thing on TV the other night about Detriot. I don't think the market is going to go anywhere there anytime soon. If I were you, I would just sell it and break even.

Nebb

I would honestly sell it, theres nothing to guarantee how long those tenants will stay, what might go wrong with the house that will need fixing. If you dont sell it now, atleast soon.

ootmother2

were there inheritance taxes paid on this property?  I would get an accountant to see if the tax loss is worth it for you against earned income.  Personally, I would bale even if you got a slight profit.  Rental properties are a PITAI don't know anything about Detroit other than it's becoming a ghost town of the auto industry.

ExpatPumpkin

Cut your losses

brookelynpaisley

I'd get rid of it.

saschaduran

It sucks so bad. It is the house I grew up in, it was my moms. And to make matters worse the tenant is my daughter's dad. His wife just texted me ELEVEN text messages as to why they are so behind. He had a mini stroke supposedly, walking with a cane, hospitalized many times for kidney infections, she had mulitple back surgerys, the dog has cancer and has to be put asleep next week. And the worst part is I think they are telling the truth and it makes me feel guilty because I make good money and go on vacation all the time. And they probably know that from talking to my daughter. But it is not my problem. And they are way better than the last tenants I had in there that all ended up being heroin junkies. I swear I think the house is cursed. Everyone that moves in there drastically goes downhill, and my moms life deteriated (sp?) in that house. His mom is the tenant in the other flat and she has lupus. But she pays faithfully on the first of each month and takes immaculate care of it.

ootmother2

guilt is the only useless emotion

janedoe1113a

I say get rid of it.

[Deleted User]

I'd sell it and get rid of the hassle.

ThePinkSuperhero

Sell it- you're not only cutting your losses, you're protecting yourself against future losses.  What happens when the needed "repairs" turn into big huge emergency black holes for money?

TurtlesAllTheWayDown

Do you think you can get 30k for it? Some houses in Detroit are worth less. And yeah, it's sad, but it doesn't really matter who the tenant is. You've been way more lenient thus far than you technically need to be. Let the next owner evict him. Then you won't have to.

saschaduran

Oot...it's the damn Catholic school! I'm not even a Catholic and I feel guilty over everything!! I swear, this is my third foray into real estate since 1999 and I have lost huge every time. Why does everyone else get equity? If I had left all the money in mutual funds that I put into these houses I could have had a great retirement if I just left it there to grow. I will never buy another house again. Or inherit one. Unless it is my aunt's in San Fancisco. I will take that one if she leaves it to me.

stina93446

I'd sell it. It sounds like a real PITA!

3plus2=5

I'd get rid of it.  You're not gaining anything by keeping it other than headaches.  And possibly more headaches in the future if the house deteriorates further. 

saschaduran

I like merymacs idea. Sell it and let the investor deal with it. If it is worth less than $30 I will short sale. I dont even care anymore. I am short selling my Vegas house that is worth about 40% of what I paid, and still going down every month. I would rather take a few years of bad credit than to spend the next 30 years paying double/triple what the house is worth.

angie74

ditch it. the whole situation sounds like trouble.

saschaduran

OMG...no joke. It is up to 22 texts now. She writes these long novels (even longer than my posts) and they come in chopped up texts. She wants me to call her and I have a headache and don't want to hear it so she keeps texting all these excuses and back stories to everything. I opened a bottle of wine. I may need a xanax to call her...I get so bent out of shape about this stuff I just choose to ignore it and hope it all goes away.

mocha beans

I'd ditch it. I really doubt anything is going to pick up in Detroit anytime soon. Even if you take a loss on it, you'll be no worse of than if you kept it and shelled out $300-400/month towards the mortgage. And what happens when the furnace craps out or it needs a new roof. Then you're out more money. Might not be a bad idea to take the credit hit all at once, rather than possibly spreading it out over a few years.

saschaduran

Mocha!!!!! I almost started a thread yesterday asking where the helll you have been. I feel like I haven't seen you in a long time.

saschaduran

Five more texts. We are up to 27. I write five word answers and she writes a novel back. I can't deal. Wanna go to bed now.

mocha beans

Aww, I feel loved! :-) Work mostly. New job has me working 2nd shift hours, and there's no off-work Internet use allowed, the tech guys keep close tabs on the computer use; gotta love state employment. I try and be productive inthe mornings before work, and I just want to sleep when I get home. I try to check on my phone if I get a chance, but the reception here is spotty and slow to do much.