Want to rent my house..

[zixxer]

I got a new job that offers a lot more possibility for advancement/growth than my current position.

Downside is that it's ~45 minutes away with NO traffic.. My commute will be 1.5 hours+ each way.

I bought the house I currently live in less than two years ago. It really hasn't gone up in value that much - possibly 1-2% at most. I'm considering renting it and buying something closer.

Opinions?

 

[SoundTheSurrender]

Renting is bad investment.

 

[swimscubasteve]

Originally posted by: SoundTheSurrender
Renting is bad investment.

uhhhh....goooood advice

 

[orakle]

Sell it. Tenants are a pain in the ass.

 

[Ronstang]

Originally posted by: orakle
Sell it. Tenants are a pain in the ass.

That is pretty accurate. They will not treat your house like they would their own and when it comes time for them to leave you will be re-doing your entire house which in the ends costs way more then it is worth to rent. Ask my how I know. Sell and move.

 

[jiggahertz]

Look into a management company if you don't want to deal with day to day issues of renting a place.

 

[jadinolf]

Originally posted by: jiggahertz
Look into a management company if you don't want to deal with day to day issues of renting a place.

Right, unless you could hire Mr. Roper.

 

[EagleKeeper]

Much also depends on the rental market.

You would want the rent if possible to cover the morgage payment which will generate a positive tax advantage

If not close to 75% of the payment will break even in the end of the year.

If the rental market does not support such a price; then you should attempt to either make the commute (many people pull that) or sell the house. You may actaully take a loss, depending again on the market.

 

[xgsound]

Tenants can indeed be a pain, and you should be a landlord only if you can deal with the problems. Most people should never be a landlord because they look at properties emotionally.

Get a credit report and deal with people who care about ruining thier FICO score. It's not easy to set up, but consider a rent to own deal. You can prequalify people, help set up thier mortgage with a broker (try to use the broker for free/cheap credit checks) (renter will be paying the fees at closing) and end up selling the house at a little higher price than otherwise in return for your footwork.

The day you rent, all house expenses become a fed tax deduction against rents even if it goes negative.

For rent, you have to be able to charge at least the mortgage + insurance +taxes + 30% annually to be worth the trouble and show the renter a lower purchase payment than rent. Otherwise just do a straight sale.

When you sell, if you lived in the house for 2 of the last 5 years, all profits to $250,000 are fed tax free.

If they move out without buying, count on fixing walls and painting the whole interior (I suggest Lowes Satin white at $65 per 5gal) at a minimum.

When the above works, or is made to work the rewards are great on many levels for everyone concerned. If you're not prepared to do the above or something like it, sell the house outright, because renting will become a huge liability.


Jim

 

[cheesecurd]

welcome to hell. sell it.

 

[zixxer]

Originally posted by: EagleKeeper
Much also depends on the rental market.

You would want the rent if possible to cover the morgage payment which will generate a positive tax advantage

If not close to 75% of the payment will break even in the end of the year.

If the rental market does not support such a price; then you should attempt to either make the commute (many people pull that) or sell the house. You may actaully take a loss, depending again on the market.

I believe I can rent it for about 125% of my mortgage payment, at least.

 

[EagleKeeper]

Originally posted by: zixxer

Originally posted by: EagleKeeper
Much also depends on the rental market.

You would want the rent if possible to cover the morgage payment which will generate a positive tax advantage

If not close to 75% of the payment will break even in the end of the year.

If the rental market does not support such a price; then you should attempt to either make the commute (many people pull that) or sell the house. You may actaully take a loss, depending again on the market.

I believe I can rent it for about 125% of my mortgage payment, at least.

Run a credit check, have the tenant put up 1 month deposit.
Take photos
Your taxes on the bottom line will thank you.

 

[NL5]

Originally posted by: SoundTheSurrender
Renting is bad investment.

I would say otherwise. I have had rental properties for ten years with almost no trouble, and very little maintenance. (on my investment, not on the property - I average about 1-2 hours a month dealing with the rentals - most months are about 15 minutes - just enough time to deposit the checks and pay the mortgages). It's like anything else, if you know what your doing, it's the best way to make money. PERIOD. All the naysayers really have no idea what they are doing, and assume nobody knows what they are doing.

Some big MUSTS -

1. No section 8
2. Buy in a nicer neighborhood, and cater to a slightly higher caliber of people than minimum wage earners.
3. DO A CREDIT CHECK
4. Have a strict set of tenant qualifications IN WRITING and adhere to it - no exceptions.
5. Treat it like a business, it is a business.
6. Buy your tenants a gift certifcate for dinner at a decent restaurant for Christmas - it's the least you can do for someone you're making a ton of money off of. Treat someone right, and they will do the same.

I make more from my investment properties than I do working. Pretty soon, I won't have to work...........

edit - and don't use a management company unless you have a LOT of properties that have a ton of positive cash flow, and you are going to be retired out of the area.....