What part of town ?

When does the ARM reset ?
What is the index and margin of the reset ?

Since you are a few years into loan it is likely to increase significantly. Is the 500-700 per month negative based on the I/O loan ?

Is 8400 per year (negative cash flow) a lot of money to you ?

How much will your cash flow improve by moving ?
Raise in new job/ lower cost to rent.

If your new job pays more and your new rent (in the place you move to) is less than you can rent your old place for, you could consider keeping the place and renting it out.

1 BR condos are at the bottom of the food chain. Your unit seems to be on the leading edge of the bust (down at least 25% already). It’s value will probably drop to the point where someone could buy it as a rental and have positive cash flow. That means another 50K or more in depreciation.
That said, it might be difficult to sell at the price you want to sell it. FOr the 70K or so you might have to bring to closing, you might be able to carry the negative for about a decade. Sometimes it’s too late to sell.

Is your credit good ?

What part of town ?

When does the ARM reset ?
What is the index and margin of the reset ?

Since you are a few years into loan it is likely to increase significantly. Is the 500-700 per month negative based on the I/O loan ?

Is 8400 per year (negative cash flow) a lot of money to you ?

How much will your cash flow improve by moving ?
Raise in new job/ lower cost to rent.

If your new job pays more and your new rent (in the place you move to) is less than you can rent your old place for, you could consider keeping the place and renting it out.

1 BR condos are at the bottom of the food chain. Your unit seems to be on the leading edge of the bust (down at least 25% already). It’s value will probably drop to the point where someone could buy it as a rental and have positive cash flow. That means another 50K or more in depreciation.
That said, it might be difficult to sell at the price you want to sell it. FOr the 70K or so you might have to bring to closing, you might be able to carry the negative for about a decade. Sometimes it’s too late to sell.

Is your credit good ?

What about working on a rent to own program. Give soemone the purchase to buy at the end of a period of time. Structure the contract so that it is win win. You ahve income coming in , they are responsible for upkeep. Might be a decent fit for you.

Long time lurker, first time poster. I just want to say, this blog is outstanding, I’ve enjoyed reading commentary on here for months, but have been shy to post. I’m only 25, and new to the real estate game, this site has taught me so much.

I am in a similar situation. My wife and I bought a condo in Carmel Mountain Ranch about 2 1/2 yrs ago. Wish I had discovered piggington before then, but thats in the past! We bought a 1 BR condo for 275k. We got a govt CHFA loan which is 30yr fixed at 4.5%. We put 20% down also. The place seemed like a great deal at the time, but now Im seeing an identical unit listed for short sale at 235k….ugh

My wife and I would like to start a family at some point, and dont know what to do with our condo. After reading this site, I think its best that we rent a house and rent our condo for several years until the market improves. I dont know if its even possible to rent a place with a CHFA loan, so we may have to refi. Our combined income now is about 95k with great credit. Our mortgage with $200 HOA is about 1600. So most likely looking at a 500 or 600 dollar expense to rent out

We are looking to move sometime summer/fall 2008. What do you guys think?

PS: sorry to hijack your thread 2008, I just dont want to post a new topic thats similar.

Long time lurker, first time poster. I just want to say, this blog is outstanding, I’ve enjoyed reading commentary on here for months, but have been shy to post. I’m only 25, and new to the real estate game, this site has taught me so much.

I am in a similar situation. My wife and I bought a condo in Carmel Mountain Ranch about 2 1/2 yrs ago. Wish I had discovered piggington before then, but thats in the past! We bought a 1 BR condo for 275k. We got a govt CHFA loan which is 30yr fixed at 4.5%. We put 20% down also. The place seemed like a great deal at the time, but now Im seeing an identical unit listed for short sale at 235k….ugh

My wife and I would like to start a family at some point, and dont know what to do with our condo. After reading this site, I think its best that we rent a house and rent our condo for several years until the market improves. I dont know if its even possible to rent a place with a CHFA loan, so we may have to refi. Our combined income now is about 95k with great credit. Our mortgage with $200 HOA is about 1600. So most likely looking at a 500 or 600 dollar expense to rent out

We are looking to move sometime summer/fall 2008. What do you guys think?

PS: sorry to hijack your thread 2008, I just dont want to post a new topic thats similar.

CMRJoe

I would look and see if the CHFA loan is an assumable mortgate. If you look to sell it could provide a value add and get you more money for your home. Run the numbers and see what it is worth to save 1.5% on a mortgage. If someone is willing to pay 235k but have to take out a 6.5% mortgage they ahve $1485 monthly payment. With your 4.5% rate you could charge up to 293K and the person would have the same payment. This give you a nice bargaining chip if you find the right buyer. Good Luck