My first attempt at real estate was not successful and was wondering what anyone's thoughts are about how I should move forward.
I built a house at the end of 2007 beginning 2008 and attempted to sell it without initial success. For the last year I have had renters in there. The renters have been good renters paying on time but the house does not cash flow with taxes and insurance. The loan is a construction loan and is coming due in April 2010. The renters are interested in buying it but will most likely not qualify for the full amount of the loan and honestly wouldn't pay the full amount owed anyway. The loan is also collateralized by another property so the bank will not forgive the remaining owed. The bank has sent my an extention option which I'm sure they will extend, they don't want the property. My question is should I just continue to rent to them or sell it and take the loss making the remaining monthly payment deficiency to the bank or just continue to rent to home until values come back up.
Thank you for any advice.