NYC Owner Occupied Underwater Multifamily Property.

[jaydigital]

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

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My rent roll covers all expenses including mortgage. I'm able to rent my apt for an extra $1700/month. All three apt $5100.

Just to be clear, are you showing positive cash flow overall?

Will rent still over expenses after the rate change?

[jaydigital]

Multyfamily - 3 apts
Original Purchase Price: 680k
Out of Pocket Cash: 100k  plus 50K in Renovation( 150K cash invested in this property)
Today Vale: 500k
Unpaid Loan Balance_ 580K
Have an Interest Only loan that matures to 6.25% in a year due to loan modification.
Rent Roll
Apt 1: $1700
Apt 2: $1700
Apt 3: $0, I live in this apt
Mortgage (5.625%) plus taxes: $3,234.50
                                       water $100/month
                        electric and heat $175
                 insurance with Fema: :$200


Expensis:                        $3710
Rent Roll:                        $3400
Out of Pocket expense:     $310

I'm paying for an underwater property that will not appreciate for years to come. There are many foreclosures in my area. A buyer can simply come in my neighborhood and purchase a similar home for 500k with 4% interest rate. Should I Shortsale? Foreclosure? Don't do anything and start investing my money (500K) in the stock market? paydown the mortgage for cashflow?
Hope everyone understands. Thank you

Tenants are great and always on time, reasons why I have not raised their rents. I love my apt but not the neighborhood. Better Neighborhoods, One bedrooms range from $3,500-4000/month.

401k's around 150K

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(moved to the other thread where more action was happening.)