Vacant Rental Property -
My sf rental home in Los Angeles is currently vacant. I have been told that it is worth about $380,000. I owe about $75,000 on the first. I recently took out a HELC, $180,000. I used about $35,000 to payoff some bills and to do some work on the property. My total indebtedness on this property is about $105,000.

Now that this house is vacant, I must pay about $1,080 per month to carry the property. My husband and I cannot afford to make this payment without the rental income. I am a stay at home mom.

What should I do?
Would I be better off selling the property and reinvesting in multi-family property? A friend just purchased a duplex in Ohio for $49,000 cash. His gross rental income is $900 per month.

Or should I refinance, taking some money out to invest in multi-family property.

Are there tax implications of not having interest payments to write-off? Is it to my advantage to have free and clear property?

Thank you in advance for your help.

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Filed in: Advantage Of Cash In Advance