What options do my boyfriend and I have with his condo that is underwater?

My boyfriend owns a condo and his mortgage is currently underwater by around 10k. I can't move in with him due to the condo association only allowing one dog (he has one already). We tried to call to see if the association would make an exception, but they're firm on their decision. We don't want to walk away or do a short sale because we want to keep our good credit. He isn't thrilled about the idea of being a landlord. We have started making improvements to try to sell for the top amount we could. We know that it will be difficult to sell because there was no cap in renting out units. Not really sure what other options we have at this point?!?
Anonymous User
Anonymous User
Asked Nov 12, 2012
Edited Nov 12, 2012
Before you invest more in renovations, I would suggest researching the sale price of comparable properties in his development / neighborhood / city so you can get and idea of where the local market is actually topping out. If those actual sale prices aren't near the amount he needs to make from the sale of the property, then renovating to sell may not be the way to go in your market. Also, try talking it over with a realtor who specializes in condos in your price-point, but pay attention to whether s/he tries to talk you into what works best for him/her instead of what works better for you guys.

I never liked the idea of being a landlord either. If it were left to me, no one would ever have to pay rent on time! Working with a property management company might be a viable alternative for you. Try talking numbers with a few of them. See if they can help him turn enough of a profit on the property to justify keeping it as an income property until your local market can support a sales price that gets him above water.

Also, if you live in an area with tons of tourists, try looking into connecting with a company that manages vacation rentals if the condo board doesn't prohibit that.

Good luck.
skyDancer
Answered Nov 12, 2012
Edited Nov 12, 2012

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