Need help investment home mess!?

We bought a fixer upper 2 years ago as a investment property for about 60,000 below appraisal , long stry short this home is not selling renting has been a nightmare, any ideas on what to do with money pit?

If you haven't tried this, you may want to consider it. Sell the house, but when you run the ad, put in "For Sale By Owner, Owner Will Finance". I guarantee you, you'll get calls on the house. It's better then renting because the new people own the house and any problems is their concern not yours. Plus, you don't have to hold the mortgage for 30 years (since you'll be the bank for the new owners, they'll pay you). What you do charge a interest rate a little higher than they can get at a bank. What happens is there are a lot of people out there that can make the payments on a house, but they don't qualify for traditional mortgages. They may have credit issue, but before you turn them down, consider that most people have credit issues because of something out of their control like a job loss or catastrophic illness. Sure you do have the deadbeats, but they are the exception not the rule. Also, they could be disqualifed because their income couldn't be verified, like someone that's self employed, etc. I know one guy that had decent credit and had $50,000 as a downpayment, but because the bank couldn't verify his income, they wouldn't finance him.

So, what you do is charge say like 8% interest. If they complain, say:

"Hey, you haven't been able to get a mortgage through a bank. And if you have poor credit, a B/C Lender is going to charge you 15%, if you can get the loan. You won't have to pay 8% forever. If you make your mortgage payments on time and don't get any more derogatory items on your credit report, any bank will refinance you."

Believe me, you'll get buyers. Now, here's the deal. Hold the mortgage for say 6 months to 1 year, then sell the note to a note buyer. They'll discount the note a bit, but you'll walk away with 6 - 12 months of interest payments and then when the new owner has made payments for a while and seasoned the note, there are not buyers that will buy the mortgage from you.

I would seek professional advice if you're going to go this route. It's cheaper then selling through an agent (you don't have to pay the 6% commission) and the closing costs are cheaper.

Donate the home and property to a charity. Nice tax write off.

Cut your losses. Sell it for what you can...the housing market is going down the tubes.

Remember that the difference between a great investor and a mediocre investor is small. Both can make money, but the great investor just doesn't lose as much :-) Simple concept, yet rarely practiced. Everyone loses money from time to time, it's just that the smart investors know when enough is enough. Sounds to me like you've had enough...

4xtrader has a good plan.