The beatles Case Study

[PJ]

I just want to say that I'm really impressed you're here and looking for feedback and taking action.  I followed along with the other thread and it would be overwhelming to say the least.  I can't offer constructive feedback other than that right now, but good work.

I, too, would like to add in my support for you, Mrs Beatles. Good job coming back, good job asking questions. We really want you to succeed. Choose a realtor and get that sucker on the market right away. Good luck!

+1 and +1

I read through all of the other thread in a couple of long sittings, and it was overwhelming even for me!  And I know it upset both you and your husband at times.  Yet you seem to have been able to get past that, and see past that to the fact that there's good advice here, and now we see you taking the reins and trying to move forward on what's been suggested.

[theotherbeatle]

I just want to say that I'm really impressed you're here and looking for feedback and taking action.  I followed along with the other thread and it would be overwhelming to say the least.  I can't offer constructive feedback other than that right now, but good work.

I, too, would like to add in my support for you, Mrs Beatles. Good job coming back, good job asking questions. We really want you to succeed. Choose a realtor and get that sucker on the market right away. Good luck!

+1 and +1

I read through all of the other thread in a couple of long sittings, and it was overwhelming even for me!  And I know it upset both you and your husband at times.  Yet you seem to have been able to get past that, and see past that to the fact that there's good advice here, and now we see you taking the reins and trying to move forward on what's been suggested.

Thank you for the kindness, both you and everyone else who has said nice things in this thread.

Honestly it took a lot of gusto for me to log into here today. I contemplated it for a while. I am a little bitter that the admins thought it was prudent to ban my husband. He said some not nice things but he was exhausted and overwhelmed and they took that time to stop him from coming back here, right in the middle of a time that we need this forums help and advice the most. I simply dont have the time to be on here that he does. It is what it is.

Thanks for the help everyone.

[theotherbeatle]

If anyone has advice on how to tell the tenant that we will be bringing a realtor over without freaking them out and making them look at other houses to move to, i would appreciate it.

[Cranky]

Well, they're probably going to have to move when you sell it anyway, and if they haven't moved out of a house with a bad roof and no insurance, it's possible that they can't afford to move.

I'm with the chorus - you already have no money, so either you sell the house for whatever you can get for it, or you buy some shingles and you and your parents and Mr. Beetle and whatever friends you can muster climb up and nail some shingles on there, and then you sell it.

[marty998]

Tenants know this when they sign the lease - there will be regular inspections and they will need to be cooperative during a potential selling process.

All part of the deal, hopefully your ones are reasonable people and don't make things a hassle.

Good luck with your sale.

[ysette9]

Depending on your state, you are probably required to give them x days/hours notice in advance that you need to enter the property. My landlord just emails me to say "I need to check out X this week. Is it okay if I enter the house on Y day?"

In your case it sounds like they already know you are thinking about selling since you said they are not able to buy it themselves (I presume you found this out in an actual conversation with them). Just simply follow up and say you are having a real estate agent over on whichever day.

[theotherbeatle]

Tenants know this when they sign the lease - there will be regular inspections and they will need to be cooperative during a potential selling process.

All part of the deal, hopefully your ones are reasonable people and don't make things a hassle.

Good luck with your sale.

The issue is not whether they understand this, but rather we dont want them to leave or find another place to live before we sell (we need the rent money).

[Malum Prohibitum]

- The buyer's lender might not consider the roof to be "bad."

Honey, the shingles are gone and all you see is plywood in several parts of the roof. The reason we don't have insurance is because the insurance company dropped us because the roof was so bad. I don't think there is any degree worse than this.

Then replace the roof.

Use a credit card.

Then sell the rental.

Then sell the house you are living in now.

Rent something small.  Really small.

Sell all materials possessions that will not fit into the rental house when you move.

Use money from selling shit to pay down debt.

Use money saved from not making mortgage payments to payment to pay down debt.

Use money saved from not paying property taxes anymore (renters do not pay property taxes) to pay down debt.

Use money saved from reduced utilities to pay down debt.

Sell the big mansion, too.

That's three home sales in short order.  You are going to make some real estate agent very happy, and you are going to have hundreds of thousands of dollars in cash.

Invest the cash.  Do not buy another home.  Keep renting a small house.

Once all debts are gone, invest the money you are saving from not living the prior lifestyle.

You will be rich in very short order.

Did I leave anything out?

[researcher1]

If anyone has advice on how to tell the tenant that we will be bringing a realtor over without freaking them out and making them look at other houses to move to, i would appreciate it.

I thought you had already told the tenant???  Earlier you said this...
"We have acted. The tenants were told of our plans to sell and we are in talks with the realtor on how to move forward."

If you've told them your plans to sell, then they shouldn't be "freaked out" about bringing a realtor over.

[ysette9]

The issue is not whether they understand this, but rather we dont want them to leave or find another place to live before we sell (we need the rent money).

I just don't see that you have other viable options here. You can't tiptoe around the property without letting them know what is going on. That is shady. The real estate agent can't do a proper job of assessing and marketing that property if she/he can't see it. You can't dig out of this mess until you sell the property. I think you just have to take a big breath and reach out to the tenants. Be honest, keep them in the loop, listen to their concerns. It is very possible that whoever buys the place will want the renters to stay put since it will likely stay a rental/investment property. Every minute you don't do something your situation is getting worse, so take the plunge and just reach out to the renters. Hopefully you will be pleasantly surprised.

[CheapScholar]

I really admire you coming on here.  I'm no real estate expert, but it seems to me you need to replace the roof and have a relator sell the property within a month or 2.  I also read the blog by Mr. Beatles.  Very long, as noted.  I get that writing is cathartic for him; I write myself.  Can he cut his hours writing and Uber or deliver pizzas, sell stuff on eBay to help pass some time?

[researcher1]

Can he cut his hours writing and Uber or deliver pizzas, sell stuff on eBay to help pass some time?

All of these things were suggested many times by many people.  He's unwilling to do any of them.
- They supposedly don't have Uber where he lives
- He can't deliver pizza because of a "bad back"
- He doesn't want to sell anything because he won't get much for it and will "take a big loss"

[CheapScholar]

That's right, researcher.  I remember now.  So, then, some type of side hustle.  It would be for Beatles to think of what exactly that is.

[ysette9]

Let's not let this devolve into rehashing the original thread. I think we need to be gentle but firm with Mrs Beatles and focus on simple, actionable steps she can implement. I think we might have thrown too much at them all at once before. It is a lot to digest.

So, one thing at a time. Choose a real estate agent and get that sucker listed already! Cash-only offers. Let's close this sucker soon and then move on to the next big step to plug the holes of this sinking ship.

[Iplawyer]

Mrs. Beatles - I thought that you did not have an outside job.  Why don't you have more time to do this research yourself? I think you both need to step up to the plate here. 

[former player]

I really admire you coming on here.  I'm no real estate expert, but it seems to me you need to replace the roof and have a relator sell the property within a month or 2.  I also read the blog by Mr. Beatles.  Very long, as noted.  I get that writing is cathartic for him; I write myself.  Can he cut his hours writing and Uber or deliver pizzas, sell stuff on eBay to help pass some time?

There is no point suggesting that the beatles replace the roof: they don't have the money to pay anyone else (they are close to bankruptcy) or the knowledge and physical ability to do it themselves.  They have to sell the house "as is" for whatever they can get, as soon as they can get it, so that it doesn't get foreclosed (or burn down while uninsured) and to give themselves some breathing room on their other debts.

[CheapScholar]

Sorry I got off topic!  Mrs. Beatles, I assume you already thought of this, but can any family or friends recommend a realtor that can be trusted?  Have you received at least a few quotes on the roof yet?  I see no reason why you can't list the property now and inform potential buyers that a new roof will be added.

[theotherbeatle]

If anyone has advice on how to tell the tenant that we will be bringing a realtor over without freaking them out and making them look at other houses to move to, i would appreciate it.

I thought you had already told the tenant???  Earlier you said this...
"We have acted. The tenants were told of our plans to sell and we are in talks with the realtor on how to move forward."

If you've told them your plans to sell, then they shouldn't be "freaked out" about bringing a realtor over.

I can see how that was confusing, as I did not word it properly. We asked the tenant if they wanted to purchase the property. We didn't tell them that we were going to sell it no matter what.

[theotherbeatle]

Mrs. Beatles - I thought that you did not have an outside job.  Why don't you have more time to do this research yourself? I think you both need to step up to the plate here.

Taking care of children is a full time job, mind you.

[theotherbeatle]

Sorry I got off topic!  Mrs. Beatles, I assume you already thought of this, but can any family or friends recommend a realtor that can be trusted?  Have you received at least a few quotes on the roof yet?  I see no reason why you can't list the property now and inform potential buyers that a new roof will be added.

The realtor our family uses is the one that everyone in this thread has told me not to trust. I've since contacted other realtors and they said the same thing.

[former player]

Sorry I got off topic!  Mrs. Beatles, I assume you already thought of this, but can any family or friends recommend a realtor that can be trusted?  Have you received at least a few quotes on the roof yet?  I see no reason why you can't list the property now and inform potential buyers that a new roof will be added.

The realtor our family uses is the one that everyone in this thread has told me not to trust. I've since contacted other realtors and they said the same thing.

Is that quite right?  I thought your first realtor told you you needed to replace the roof, which you can't do so you have ended up doing nothing for months.  It seems that the others have said you can list for cash buyers, so that is something you can do immediately.  That's a considerable difference.

[MayDay]

Mrs. Beatles - I thought that you did not have an outside job.  Why don't you have more time to do this research yourself? I think you both need to step up to the plate here.

Taking care of children is a full time job, mind you.

When your children are months if not weeks from their parents losing everything, those children can have an hour or two of pbskidds a day while mommy gets shit done so they still have a roof over their heads. 

Lol for days that you don't have any free time at all. Are you telling me that your parents who you provide housing for, or your in laws who bale you our repeatedly, won't watch the kids for a few hours once a week?  That your kids never watch telly? Or sleep?

What alternate universe do you live in? MOD NOTE: Keep advice actionable, realize everyone is in a different place and some need more support than facepunches, if you can't do that, remove yourself from the thread.

[pbkmaine]

This is my strong recommendation:

https://www.daveramsey.com/fpu/classes

[theotherbeatle]

I really admire you coming on here.  I'm no real estate expert, but it seems to me you need to replace the roof and have a relator sell the property within a month or 2.  I also read the blog by Mr. Beatles.  Very long, as noted.  I get that writing is cathartic for him; I write myself.  Can he cut his hours writing and Uber or deliver pizzas, sell stuff on eBay to help pass some time?

Actually, he started doing freelance work. He's probably gonna be really mad at me now because he wanted to tell everyone himself, but he is very good at what he does and quickly picked up two clients. He signed a $3,600 contract with the first client and received $500 for a quick project with the second client. We won't receive the $3,600 until May I was told but got the $500 literally today ($456). We don't have Uber in our area but he would love to do that. He can't deliver pizzas because of a medical issue.

[theotherbeatle]

Sorry I got off topic!  Mrs. Beatles, I assume you already thought of this, but can any family or friends recommend a realtor that can be trusted?  Have you received at least a few quotes on the roof yet?  I see no reason why you can't list the property now and inform potential buyers that a new roof will be added.

The realtor our family uses is the one that everyone in this thread has told me not to trust. I've since contacted other realtors and they said the same thing.

Is that quite right?  I thought your first realtor told you you needed to replace the roof, which you can't do so you have ended up doing nothing for months.  It seems that the others have said you can list for cash buyers, so that is something you can do immediately.  That's a considerable difference.

Our first realtor told us we could list it cash too. Which we didn't consider as an option because we didn't really think there would be anyone with that much money who would want our house.

[cats]

The issue is not whether they understand this, but rather we dont want them to leave or find another place to live before we sell (we need the rent money).

I have had several friends leave rentals because the properties were sold. In all cases, they waited until the last possible minute to leave--either when the property sold, or when the landlord kicked them out to stage the place. Moving is a pain, most people will delay it for as long as possible.

[CheapScholar]

I really admire you coming on here.  I'm no real estate expert, but it seems to me you need to replace the roof and have a relator sell the property within a month or 2.  I also read the blog by Mr. Beatles.  Very long, as noted.  I get that writing is cathartic for him; I write myself.  Can he cut his hours writing and Uber or deliver pizzas, sell stuff on eBay to help pass some time?

Actually, he started doing freelance work. He's probably gonna be really mad at me now because he wanted to tell everyone himself, but he is very good at what he does and quickly picked up two clients. He signed a $3,600 contract with the first client and received $500 for a quick project with the second client. We won't receive the $3,600 until May I was told but got the $500 literally today ($456). We don't have Uber in our area but he would love to do that. He can't deliver pizzas because of a medical issue.

That's awesome!  I hope he's not mad you blew his news. I'm sure he will have more success to report though after his 90 day ban.  : )

[Zoot]

Our first realtor told us we could list it cash too. Which we didn't consider as an option because we didn't really think there would be anyone with that much money who would want our house.

People with enough cash to buy a house generally aren't buying it to live in--they are buying it to rehab it, and then either sell for a profit or rent it.

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

You're selling to a different market segment than people who want everything to be pristine and perfect.  The buyer you are looking for is someone who won't care about those things, and in fact might think "the worse the better" because they know they can put in the sweat equity to fix it up, or have an army of contractors they can call on to bring it back into rent-able condition.

Good luck!  We are all rooting for you!

[Zoot]

Also, Mrs. Beatles, you might be interested in this section of the forum:

http://forum.mrmoneymustache.com/real-estate-and-landlording/

You'll find all kinds of expertise there--it might be better to post your question in that section, as there may be people who have been in a similar situation.  Heck, I even wonder if someone there might be interested in buying the house.  ;-)

[theotherbeatle]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

[pbkmaine]

Then fix the roof and sell.

[rpr]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

I understand how frustrating it must be. As can be seen, your choices are

1. Pay to fix the roof --> needs money on hand
2. Fix the roof yourself --> needs skills
3. See as is --> take a loss

You need to decide. The sooner this is made, the faster you can progress into fixing other areas.

[Iplawyer]

Mrs. Beatles - I thought that you did not have an outside job.  Why don't you have more time to do this research yourself? I think you both need to step up to the plate here.

Taking care of children is a full time job, mind you.

That is why I said "outside" job.  Many, many, many people here do side hustles and find lots of time to help out the family financially while raising children. 

[MayDay]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

Then even a cash buyer will be willing to play close to whatever "full price minus roof cost" is.

The problem is that the more you drag your feet, the less immaculate the house will be. The roof will leak and damage the inside of the house. Then it's worth less than it is today.

You have a depreciating asset. Right now it's depreciating a tiny bit as more shingles blow off and more leaks occur slowly. But all it takes is one normal spring storm and the value will take a nosedive. All it takes is one accidental fire and the value is zero.

So the hypothetical full price sale isn't on the table unless you are willing to sell one of your other houses to fund the roof repair. But the longer you spend dithering over it, the more likely the rental house has suffered more damage, making the price even lower.

That's why we are all in a panic. We are all envisioning your burned down house (tenants are not as careful as you would be!) and screaming at you to fix it while you still can, and you are in a state of paralysis just watching it burn. 

[Iplawyer]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

Just a little advice in case you ever find yourself in such a situation again - before you improve  and add "luxuries" to the inside of a house - you must take care of it structurally and on the outside least you end up with nothing.  If the roof collapses you will loose everything.  It is better to have a sound roof than granite countertops for that reason. 

Further - why don't you hop on the bandwagon side hustle too so you can help the family out financially.  You can deliver pizzas in the evening while your husband watches the kids and does his side hustle.  Kids should be able to play and entertain themselves without constant parental stimulation.

[mustachepungoeshere]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

Just a little advice in case you ever find yourself in such a situation again - before you improve  and add "luxuries" to the inside of a house - you must take care of it structurally and on the outside least you end up with nothing.  If the roof collapses you will loose everything.  It is better to have a sound roof than granite countertops for that reason...

Forgive me if this has already been addressed, but if the house is brand new why is the roof in such bad condition?

In Australia a rash of new rental properties were thrown up so quickly that cosmetic and structural problems became apparent six or 12 months later (rendering falling off external walls was common). Various owners corporations had to either threaten or undertake legal action to get necessary repairs.

Would you have any recourse with the builder?

[swick]

Theotherbeatles:

You might not have seen it in the other case study, as it was rather buried, but it came to light that you OWE 19,000 in back taxes on the rental. You OWE ANOTHER 4,000 bill for this year.

YOU ARE MORE THAN 3 YEARS BEHIND ON THE TAXES.

This is important because in the county you live in they have the right to TAKE YOUR PROPERTY after TWO YEARS.

If they take it for unpaid taxes, you will get nothing.

YOU HAVE NO INSURANCE. If something happens on your property, you could lose it and get nothing Worse, you could be SUED and LOSE EVERYTHING - all your houses, all your possessions - leaving you, your children, your parents all homeless.

I know it is hard to think about the money that was put into updating the house. I know it is hard to think of taking less money than you think it is worth, but you have to drastically alter your thinking. You have so much debt that the worst scenario you can imagine could happen. You need to protect yourself and your family. Nothing else matters.

[Laura33]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

So.  Have you considered that the story of the rental is a metaphor for how you got into your current situation?  It appears that you focused on all of the shiny/pretty things, but in doing so critically shortchanged the structure on which that house (life) was based, and now that omission threatens the whole thing.  The first rule of renovation (life) is that you make sure the structure is sound and weathertight before you spend a penny on blingy finishes.

You are at a point where you have realized how shaky your foundation is, but you are still clinging to the dream, that vision of the perfect life that you were chasing when you started down that path (in this case, that great investment property to bring you cash flow and appreciation).  The best thing you can do now is change your mindset.  Your financial priorities were flipped from where they needed to be, so do that 180-degree turn and put first things first.  And that means raising cash and reducing debt, as quickly as you can -- even when that means giving up on the pretty stuff (valuable investment property) you wanted so much.

IOW, something needs to go on the market this week, priced for a quick sale.  It can be the rental, as is, listed with a realtor who specializes in investment properties.  It can be the house you live in (and you guys move into the rental).  It can be the home your parents live in, which would free up much-needed equity.  Your life, your call -- it just needs to be something.

I am not meaning to belittle the pain in giving up that dream, that vision.  But it is also the single-most important step you can take right now, both for your finances and for yourself, to prove to yourself that you now have your priorities in the right order, and to start to live what that feels like.

[PJ]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

Just a little advice in case you ever find yourself in such a situation again - before you improve  and add "luxuries" to the inside of a house - you must take care of it structurally and on the outside least you end up with nothing.  If the roof collapses you will loose everything.  It is better to have a sound roof than granite countertops for that reason...

Forgive me if this has already been addressed, but if the house is brand new why is the roof in such bad condition?

In Australia a rash of new rental properties were thrown up so quickly that cosmetic and structural problems became apparent six or 12 months later (rendering falling off external walls was common). Various owners corporations had to either threaten or undertake legal action to get necessary repairs.

Would you have any recourse with the builder?

IIRC from the original thread, mustachepungoeshere, it's not literally a brand new house. 

It's a house that they previously lived in, and while they were there, thebeatles' parents made significant contributions to upgrade a whole lot of stuff in the house.

[theotherbeatle]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

Just a little advice in case you ever find yourself in such a situation again - before you improve  and add "luxuries" to the inside of a house - you must take care of it structurally and on the outside least you end up with nothing.  If the roof collapses you will loose everything.  It is better to have a sound roof than granite countertops for that reason...

Forgive me if this has already been addressed, but if the house is brand new why is the roof in such bad condition?

In Australia a rash of new rental properties were thrown up so quickly that cosmetic and structural problems became apparent six or 12 months later (rendering falling off external walls was common). Various owners corporations had to either threaten or undertake legal action to get necessary repairs.

Would you have any recourse with the builder?

IIRC from the original thread, mustachepungoeshere, it's not literally a brand new house. 

It's a house that they previously lived in, and while they were there, thebeatles' parents made significant contributions to upgrade a whole lot of stuff in the house.

Yes correct.

[theotherbeatle]

Theotherbeatles:

You might not have seen it in the other case study, as it was rather buried, but it came to light that you OWE 19,000 in back taxes on the rental. You OWE ANOTHER 4,000 bill for this year.

YOU ARE MORE THAN 3 YEARS BEHIND ON THE TAXES.

This is important because in the county you live in they have the right to TAKE YOUR PROPERTY after TWO YEARS.

If they take it for unpaid taxes, you will get nothing.

YOU HAVE NO INSURANCE. If something happens on your property, you could lose it and get nothing Worse, you could be SUED and LOSE EVERYTHING - all your houses, all your possessions - leaving you, your children, your parents all homeless.

I know it is hard to think about the money that was put into updating the house. I know it is hard to think of taking less money than you think it is worth, but you have to drastically alter your thinking. You have so much debt that the worst scenario you can imagine could happen. You need to protect yourself and your family. Nothing else matters.

I know you're right. We are working on a day to meet the realtor at the house.

[swick]

I know you're right. We are working on a day to meet the realtor at the house.

This is a really good first step. It has taken a lot of courage for you to wade in here and face the situation you are in.

You are going to have to make lots of hard choices to secure your family's future. You can do this. YOU have the capacity to learn and take charge and you have lots of support.

[charis]

You can do this. You are so close to turning this thing around. It has to be drastic, but once you finally realize what you have to do (all of it, the other properties too), you will wish you did it sooner. Taking care of children IS a full time job, but mothers will work two, sometimes 2.5 jobs if they have to. It will only be temporary for you.

[Pizzabrewer]

It wouldn't hurt to contact these people (or one of several others in your area):

http://www.mightyhomebuyers.com/

They'll make an all-cash offer, no closing costs or real estate commission, fast closing, get the thing off your hands to stop the bleeding.

Yes it will be low-ball but it wouldn't hurt to see what they offer.

[Zoot]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

I'm sorry if my words were offensive.  That was definitely not my intention.  :)

However, let's take a look at what happened here:  I assumed that because the roof was in bad shape, other things in the house were also in bad shape.  This is what will happen in the mind of your garden-variety "retail" house shopper (who will almost certainly be using a mortgage to buy).  As others including your realtor have said, if this is the market you want to sell to, you will need to fix the roof, or they won't even get out of the car to come inside and look at the condition of the inside.

But your "clearance" shopper--that is, an investor or future landlord buying with cash--will be able to see the roof for what it is, and will have the "eye" to know the condition of all the other major systems (HVAC, plumbing, wiring, foundation).  That kind of buyer will be experienced in doing the math of the overall purchase price and can offer accordingly.

In my world, it would be like shopping for a pair of pants on a clearance rack.  If the hem is ripped out of one leg, I know I can fix that myself with minimal effort and would certainly buy them if the price is right; a ripped hem would not scare me off.  But if it's missing a zipper, or has a huge rip in the fabric, I would know it would be out of my league to fix and I'd pass.  I'm a "clearance" shopper in that regard.  But many people don't want to be bothered with hemming a pants leg, and they just want something "perfect" and "new." 

What it comes down to is this:  do you have the TIME and the MONEY to fix the roof and attract the retail buyer?   If so, do it.  If not, put it on the market as a cash-only as-is sale. 

A compromise might be to put it on the market now as a cash-only/as-is, and then shop for roof quotes while it's on the market.  You can always take the cash-only listing down and re-list as a retail property after the roof is fixed. 

Good luck!

[With This Herring]

Mrs. Beatles, I am glad to see you are back on the forums and taking the steps necessary to protect your family's future.  I hope you find the forums as educational as many of us have.  :)

The issue is not whether they understand this, but rather we dont want them to leave or find another place to live before we sell (we need the rent money).

I have had several friends leave rentals because the properties were sold. In all cases, they waited until the last possible minute to leave--either when the property sold, or when the landlord kicked them out to stage the place. Moving is a pain, most people will delay it for as long as possible.

Because tenants moving before a sale is a worry for you, I will second this.  A friend down the street from me knows her landlord is trying to sell the property.  The landlord is already in discussions with a buyer.  My friend is waiting until the house is actually sold and the new owner decides that he wants the existing tenants to leave/wants to raise rent significantly before she finds a new place.  It is a pain to move everything, and people won't do it until they are sure it is necessary.

[FIRE me]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

I am not doubting your honesty, but I am doubting the accuracy of that statement. Considering that bare plywood has been visible for some time, there is certain to be significant water damage. If not in the ceilings, it is probably running down into the walls causing rot and mold.

Since you lack the resources to repair the roof, you should sell the house as is, right away. The price it brings will no doubt be very painful to you and your husband, but think of it a cauterizing a wound. Barbaric, hurts like hell, but it saves your life from bleeding out and infection.

[Poundwise]

Just stopping by to wish you and Mr. Beatles well.  You are making progress!

It's a painful thing to acknowledge that you've messed up and say goodbye to some things that could have been so nice (like rental income from the house) but it sounds like you've done the hard part already!  You will dig yourselves out, and when you start snowballing those credit cards you'll feel great.  And with the skills you learn in saving, you will become rich again and then you can buy an even better rental.  I don't discuss this much, but I dug myself out of a $80K debt, while on a $23K salary, in my early 30s and although I sometimes think about how rich I would be now if I had just saved that money, I am plenty well off now and I think my life and marriage are even stronger for what my husband and I went through. Blessings on you both.

[theotherbeatle]

You are not looking for a "retail" or "full price" buyer with a house in this condition.  You're looking for the equivalent of the clearance shopper.  :)

That really bothers me. Aside from the roof, the house is immaculate. It is brand new.

I am not doubting your honesty, but I am doubting the accuracy of that statement. Considering that bare plywood has been visible for some time, there is certain to be significant water damage. If not in the ceilings, it is probably running down into the walls causing rot and mold.

Since you lack the resources to repair the roof, you should sell the house as is, right away. The price it brings will no doubt be very painful to you and your husband, but think of it a cauterizing a wound. Barbaric, hurts like hell, but it saves your life from bleeding out and infection.

If it sells for less than $60k, we won't be walking away with much of anything. That's the most painful part. Selling a house for no profit at all.

[theotherbeatle]

Just stopping by to wish you and Mr. Beatles well.  You are making progress!

It's a painful thing to acknowledge that you've messed up and say goodbye to some things that could have been so nice (like rental income from the house) but it sounds like you've done the hard part already!  You will dig yourselves out, and when you start snowballing those credit cards you'll feel great.  And with the skills you learn in saving, you will become rich again and then you can buy an even better rental.  I don't discuss this much, but I dug myself out of a $80K debt, while on a $23K salary, in my early 30s and although I sometimes think about how rich I would be now if I had just saved that money, I am plenty well off now and I think my life and marriage are even stronger for what my husband and I went through. Blessings on you both.

Would you mind telling your complete story?