Page 1 of 3 123 LastLast
Results 1 to 10 of 23

Thread: Rental houses...

  1. #1
    wsuwrhr
    Any experiences?
    I am having a hard time selling my house for enough money to come up with a good down payment.
    It was always been drilled into my head to hold onto real estate, if you can swing it.
    I am no big baller and I have managed to live within my means until now.
    I am thinking of renting this house and buying another to live in.
    What can the ***boat collective give as advise or ideas?
    If we keep it and rent it out, in the future I would like to sell this house and parlay it into a house at the river. Maybe to retire into, just an idea.
    PM me if you would rather.
    thanks
    Brian

  2. #2
    Boozer
    Can you rent your current home for a high enough dollar amount to cover the mortgage?
    If your renter decides to leave can you cover 2 mortgages for as much as 3-4 months and make repairs to the home to cover the damage done to the home by the prior tenant in the event that they trash the place and do a lot more damage then their deposit will cover?
    Can you keep enough money in the bank to cover emergency repairs like a leaky roof, busted fence, blown out water heater, A/C condenser, furnace, and etc? If something in the house breaks you have to get it repaired immediately, if not it is grounds for the occupant to walk out of the lease.
    I've been thinking about picking up some condos here in the area and renting them out but I'm finding that I need to have a minimum 5K-10K sitting aside for emergency repairs or any other type of situation that may arise.

  3. #3
    wsuwrhr
    Yes barely.
    I most certainly don't have enough money set aside for every foreseable event. That is weighing on my mind.
    I would be able to do any repairs myself laborwise. The house is pretty basic.
    Brian
    Can you rent your current home for a high enough dollar amount to cover the mortgage?
    If your renter decides to leave can you cover 2 mortgages for as much as 3-4 months and make repairs to the home to cover the damage done to the home by the prior tenant in the event that they trash the place and do a lot more damage then their deposit will cover?
    Can you keep enough money in the bank to cover emergency repairs like a leaky roof, busted fence, blown out water heater, A/C condenser, furnace, and etc? If something in the house breaks you have to get it repaired immediately, if not it is grounds for the occupant to walk out of the lease.
    I've been thinking about picking up some condos here in the area and renting them out but I'm finding that I need to have a minimum 5K-10K sitting aside for emergency repairs or any other type of situation that may arise.

  4. #4
    YeLLowBoaT
    if you can can break even and find good tenants... go for it. otherwise stay away.

  5. #5
    wsuwrhr
    if you can can break even and find good tenants... go for it. otherwise stay away.
    That is the goal

  6. #6
    DCBob
    Can you rent your current home for a high enough dollar amount to cover the mortgage?
    If your renter decides to leave can you cover 2 mortgages for as much as 3-4 months and make repairs to the home to cover the damage done to the home by the prior tenant in the event that they trash the place and do a lot more damage then their deposit will cover?
    Can you keep enough money in the bank to cover emergency repairs like a leaky roof, busted fence, blown out water heater, A/C condenser, furnace, and etc? If something in the house breaks you have to get it repaired immediately, if not it is grounds for the occupant to walk out of the lease.
    I've been thinking about picking up some condos here in the area and renting them out but I'm finding that I need to have a minimum 5K-10K sitting aside for emergency repairs or any other type of situation that may arise.
    What he said! And, if ya rent it screen, screen, screen your prospective tenants.....it will pay off in spades

  7. #7
    phebus
    I went through the same thing when I moved from our last house. When I figured in all the costs to keep it (mortgage, insurance, taxes, hoa, repairs, etc.) it was just too much negative for me. Plus, I wanted the cash out to put into the new house to keep my mortgage down. Another thing I considered was the fact that when I did sell it, I would have to pay capital gains that would have cut into any profit.
    Tough decision, just make sure you consider all costs associated with keeping it, as well as the possible headaches involved.

  8. #8
    rodnjen
    I'm having the same battle right now. I have about $300k in "equity" but in order to afford another house in OC I will have to pull out at least $140K for a down payment. I will then be negative cashflow on my current home.
    People have many reasons for their decisions but I have found that more people wish they would have been patient and held on to that first home.
    Another thing to consider is that foreclosures are up and the supply of rentals is increasing in some areas, which may put downward pressure on rent pricing.
    That being said, I'm trying to keep my ego out of my next home purchase, buy something better but not over-the-top and keep my home.
    Good luck!

  9. #9
    BADBLOWN572
    I would have to pay capital gains that would have cut into any profit.
    Thats a big one. Per memory, in CA, you have to consider a property your personal residence for 2 years out of the last 5 that you own it to get away from capital gains. If you don't, you will be paying big time!
    It is a tough situation. If you can cover yourself, even if you are not making income off of it, you are making equity. As long as you are not negative every month, you are doing good. Your renters are making your morgage payment and in turn, making you money.
    Every year, I plan on dumping between $2k-$5k in maintenance and improvements. Also make sure that you have enough set aside to cover taxes and insurance. We had a renter move out after 3 years and trash the house. Ended up dragging out the eviction process and we had to eat the rent for 2 months. After that another month for repairs, and another month to rent out. 4 months of non covered morgage. That was in addition to the damage they did to the house. In total it was between $10-$15K out of pocket expense.
    I still look at it as I bought the house at the right time, they made my morgage for 3 years and I am still ahead. It is just sometimes shit happens with houses. It is not the short term, but the long term!
    Another thing that you have to consider is that if you rent it out, the rental $ is considered income to you. You will be taxed on it, but can still write off the interest on the loan. I would seriously talk to your accountant on what they would recommend to do. They will look at your situation and give you input.

  10. #10
    phebus
    Another thing I considered in my decision was the additional money I would have had to borrow on the new home if I wasn't pulling the money out of my old home, and the cost of that money. For example if I went in to the new home with 200k less, I would have been paying interest money on that amount that further cut into any profit.

Page 1 of 3 123 LastLast

Similar Threads

  1. Haunted Houses
    By Waist Deep in forum Sandbar
    Replies: 5
    Last Post: 10-06-2007, 03:58 PM
  2. Anyone have rental houses near Redding?
    By zudnic in forum Sandbar
    Replies: 0
    Last Post: 05-21-2007, 10:19 AM
  3. houses in the keyes?
    By LLGirl in forum Sandbar
    Replies: 5
    Last Post: 09-14-2006, 03:37 PM
  4. Help with houses
    By MsDrmr in forum Sandbar
    Replies: 5
    Last Post: 04-29-2005, 11:40 AM
  5. Replies: 27
    Last Post: 09-03-2002, 03:36 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •