Hi everyone, I'm hoping I can get some real estate tips or advice from some real estate experts on this forum, heres an introduction about me and my situation so you guys can get an idea of where I currently stand;
I just turned 21 in September and I recently purchased a house last year in November of 2006 with 2 of my close family friends in a new and rapidly developing city called Mountian House in California which is in between two already-developed cities, Livermore and Tracy. The house we purchased is a 2,481 sq ft house on a 6,162 sq ft lot which was appraised at $677,650.00 and we recieved a $130,000.00 incentive that we used toward the housing cost which brought the purchasing price down to $547,650.00 and eventually we closed escrow at $565,137.68 with $0 down on January 4th 2007. We are currently on a 30 year, 7 year fixed/1 year ARM with intrest only at 6.5%, so our payment per month is about $3600.00 and the house is being rented out for $1900.00 a month which brings it to $570.00 out of pocket per person, split 3 ways.
Ok, heres the problem, when we purchased the house, we had absolutley no knowledge about investing in real estate, our intentions for purchasing the house was to sit on it and hope for capital gains and reselling for profit, but we are young and stupid, we had no back up plan for things like, if the real estate market was to fall, which it is now, it was kinda of buying on impulse. So I want to know what would be the best thing for us to do? We all make about $50k a year so its not hurting us to keep up with the payments and we all still live at home with our parents so our debt is at a minimum. So do you think we should just hang on to it for a couple more years and hope for the best? or should we just take a lost and sell it now and invest in something else? The average listed selling price in the area is between $460-$500k for a similar property size.
Hope you guys can help me out, thanks in advance guys! oh yea HAPPY THANKSGIVING as well everyone!





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