I am trying to pursue my fastlane dream and the first step is to walk away from my 9-5 job. I will dedicate myself to the part time video business I have run the past few years. But with a family and numerous responsibilities, I have more bills than I'd like to try and support on my wife's salary alone, and I'm not sure I can depend on large amounts of income from my video business yet.
Here is my problem. I own a rental property that was my primary residence from 2007-2010, and when I couldn't sell it in 2010 due to buying it at the peak of the real estate bubble, I decided to rent it to relocate for my wife's job. I bought another house which we live in now. My rental property has been occupied for 18 months and while the tenants are great, I lose $700/month due to the difference in mortgage payment and rent collected. We can afford this loss fine as of now, but if I were to quit my $70,000/yr job to pursue fastlane I just couldn't swing the loss in addition to all our other bills.
My choices are this...
1. Walk away. Foreclose on the property and hope to rebuild my credit over the next few years.
2. Sell. Use my current equity on my home or 401k savings to pay the difference in negative equity (probably $40,000 after realtor fees).
3. Keep the property and continue to lose the $700 per month and just don't quit the job and keep working my part time business and job until the market turns around and then try and sell.
What should I do?????? I am so lost.
Here is my problem. I own a rental property that was my primary residence from 2007-2010, and when I couldn't sell it in 2010 due to buying it at the peak of the real estate bubble, I decided to rent it to relocate for my wife's job. I bought another house which we live in now. My rental property has been occupied for 18 months and while the tenants are great, I lose $700/month due to the difference in mortgage payment and rent collected. We can afford this loss fine as of now, but if I were to quit my $70,000/yr job to pursue fastlane I just couldn't swing the loss in addition to all our other bills.
My choices are this...
1. Walk away. Foreclose on the property and hope to rebuild my credit over the next few years.
2. Sell. Use my current equity on my home or 401k savings to pay the difference in negative equity (probably $40,000 after realtor fees).
3. Keep the property and continue to lose the $700 per month and just don't quit the job and keep working my part time business and job until the market turns around and then try and sell.
What should I do?????? I am so lost.
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