When buying a rental property you are sure to be thinking about all the money you can earn. But what happens if your rental property turns into a money pit? Unfortunately, this happens way too often. If you find yourself in this situation you need to consider all your options.
What can you do to stop the bleeding? Are there any major problems that need to be addressed? It is very important to know what you are up against. You may think that the repairs will cost a lot, but until you tally them up you never know for sure. If you are lucky you may be able to fix your rental property once and for all so it can eventually make you the money you were dreaming of.
What about selling? This is an idea, but you may lose money if you do so too soon. Remember, all of the problems you are having will be seen by potential buyers. This may scare them away, or cause them to throw ?low ball? offers your way. There is nothing wrong with selling, but you need to think long and hard about doing so if you are going to take a big loss.
A rental property money pit can sour you on this industry forever. Be careful about what you buy. A smart investor can avoid properties that are going to suck them dry. If you do get stuck with this type of property you should consider all your options including making the necessary repairs and selling.