Anxious
Only logged in members can reply and interact with the post.
Join SimilarWorlds for FREE »

First-time homeowner needs advice

I'm a first-time homeowner. I've been in this home for about 2.5 years. It's a townhouse in a community of 10 townhomes, so there is an HOA. The HOA fees are low, so they don't cover much. I had an inspection and I knew I had some bigger projects in the coming years, but most of the stuff that was immediate was pretty small. Or so it seemed. In the time that I've been here, I've spent nearly $25K on various repairs. We haven't even gotten to the major repairs that are coming soon (HVAC, roof). I just saw that a leak that was supposedly repaired less than a year ago is leaking again. The front entry door that was replaced a year ago, is coming off the hinge already. The property taxes just doubled. Even after paying a shortage of $5000, my mortgage still went up by $300 a month. I'm just wondering at what point do you cut your losses and sell? I haven't lived here long enough to build up the equity to replace the $25K I've already invested, so it would be lost, but I'm afraid that I can't keep up with these costs.
Top | New | Old
Gibbon · 70-79, M
Be careful and don't leave yourself upside down. Sometimes it's better to hash it out where you are. If can sell with enough gain to cover your repairs and find another place for less then you are doing good however in this market that might be hard to do
This comment is hidden. Show Comment
blindbob · 41-45
@Gibbon Very nice! I'm glad that worked out for you. I don't think I get lower rents unless I move into an unsafe neighborhood, and I'm already on the edge of one as it is.
Gibbon · 70-79, M
@blindbob That was my concern when I had to sell. I got lucky.
MarkPaul · 26-30, M
It's time (possibly past the time) to unload the property.
blindbob · 41-45
@MarkPaul As the other commenter mentioned, I'm worried about being upside down on the mortgage in addition to the lost investment.
Gibbon · 70-79, M
@blindbob you would not pay capital gains unless you made at least a $250 grand profit. After the sale based on your original purchase price
MarkPaul · 26-30, M
@blindbob The cash it's going to take to fix the things wrong with the property is going to make being upside down on the mortgage and the lost investment incidental. Throwing money at a bad investment is a known way to keep losing money. Get out while you can. An alternative is to make minor repairs to limit the loss you will experience on a sale so that you can sell the property. Staying put out of fear of the alternative is a classic way to drain your pockets.
GoFish ·
I wouldn't buy into anything with an HOA but thats just me

 
Post Comment