NYC Owner Occupied Underwater Multifamily Property.
There are plenty of foreclosures in my area, underwater properties will be stagnant for years to come.
3 level multifamily
Purchased Price 680K Before Economy Crash
50K in renovations (liquid Cash) majority for my apt.
Worth 500K-550K now
Unpaid Interest Only Mortgage Balance, 580K balance due to my 20% down.
My rate is going up to 5.75% in feb due to the F****'up loan modification.
Original rate is 6.25%, this rate takes effect in about a year or so.
Basically, the bank is placing the difference on the back-end of my balance.
I expect this added balance to be around 25k. My new unpaid balance would be around 600k.
My rent roll covers all expenses including mortgage. I'm able to rent my apt for an extra $1700/month. All three apt $5100.
Should I walk away or do a shortsale? or payoff mortgage with my 500K Liquid cash for cashflow. I'm desperately need a way out of this f****** rat race. I truly live the MMM way of life. I grew up very poor (Welfare Kid) from the south bronx and worked my butt off to obtain a masters degree. Presently, my professional career has taken a toll due to many changes in the industry, so my job is not secure.
Thanks you,
Jason