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Bloody Queef posted:AirBnB isn't always illegal in NYC. I can't remember the qualifications, but I think it was a week or more and a whole apartment didn't qualify as an illegal hotel. 30 days or more per tenant, or the owner has to also live in the unit being rented out.
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Feb 12, 2015 17:49
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DNova posted:30 days or more per tenant, or the owner has to also live in the unit being rented out. I totally forgot that airbnb wasn't allowed in NY. drat. What I 'know' is London, but having 100% of my real estate investment there doesn't fill me with confidence (although it's awesome at the moment, obviously). Oh well, stocks and shares it is for the time being.
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Feb 13, 2015 04:02
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tentish klown posted:I totally forgot that airbnb wasn't allowed in NY. drat. Would having the remainder of your investment tied down in the other biggest real estate bubble market in the world, one which is closely tied to the other by serving as the epicenters of the global financial system, fill you with more confidence?
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Feb 13, 2015 06:24
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HI. Anyone here have experience with auctions? I am interested in a condo which is available as a foreclosure. I spoke with my agent and apparently I am not allowed to see the condo and it will be an auction. Any opinions and risks on auctions would be much appreciated. Based on comparable in the building it is around $250/sq. ft to $280/sqft. Apartment listed price is $132,000 as is. However using a the comparable per square feet (low end). This should be around $163000. I was thinking of offering $125000. EDIT: The condo was acquired by a lender Jan. 2015 for $161,000. Not sure how this plays out in terms of what they are willing to accept. Zillow estimates this condo to be $176,000. 3 other units (same size) sold earlier in 2014 for $135k - 145k. OatmealRocks fucked around with this message at 18:12 on Feb 13, 2015 |
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Feb 13, 2015 17:55
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OatmealRocks posted:HI. Anyone here have experience with auctions? I am interested in a condo which is available as a foreclosure. I spoke with my agent and apparently I am not allowed to see the condo and it will be an auction. Any opinions and risks on auctions would be much appreciated. I would be concerned that the actual sale value of the unit is only about $140k, and you're talking about saving $8k for buying it completely sight-unseen. The place could be trashed, as many foreclosures are.
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Feb 13, 2015 19:02
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I would only be able to make an offer that priced in the place needing a complete rehab including electrical and plumbing. I don't have the balls for it otherwise.
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Feb 13, 2015 19:03
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Would this be a good place to ask about haggling on rent for a duplex property? I have friends who live in the bottom unit of one and the upstairs unit is opening up at the end of the month, which is right about when I was looking to move to that part of town. The problem is, I think the realtor is trying to bump the price up by about $150 a month. My friends pay $900 and the landlady who I first talked to about the unit said it would probably be just below $1000, which would make sense because of the additional windows (the duplex is set into a hill), hardwood floors, and not having anybody above you. But when I talked to the realtor, he said $1100, which seems like way too big of a jump. Even though it's in a fairly popular spot, the house's furnishings are from the 80s. Fridge is included, with washer/dryer hookups. It has a stove which is probably electric, since that's what my friends have. So, what would be the best ways of getting that price down?
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Feb 14, 2015 17:56
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Zenzirouj posted:Would this be a good place to ask about haggling on rent for a duplex property? I have friends who live in the bottom unit of one and the upstairs unit is opening up at the end of the month, which is right about when I was looking to move to that part of town. The problem is, I think the realtor is trying to bump the price up by about $150 a month. My friends pay $900 and the landlady who I first talked to about the unit said it would probably be just below $1000, which would make sense because of the additional windows (the duplex is set into a hill), hardwood floors, and not having anybody above you. But when I talked to the realtor, he said $1100, which seems like way too big of a jump. Even though it's in a fairly popular spot, the house's furnishings are from the 80s. Fridge is included, with washer/dryer hookups. It has a stove which is probably electric, since that's what my friends have. Offer less and have a backup plan. Depends upon the particulars of the market and location but a realtor especially probably feels pretty confident about their asking price with comps so easy to find on the internet. I personally have never negotiated on my rent because I'd rather get a lot of interest, be choosy about my tenants and avoid vacancy than squeeze the last possible $50 out of my rentals.
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Feb 14, 2015 19:01
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BEHOLD: MY CAPE posted:Offer less and have a backup plan. Depends upon the particulars of the market and location but a realtor especially probably feels pretty confident about their asking price with comps so easy to find on the internet. I personally have never negotiated on my rent because I'd rather get a lot of interest, be choosy about my tenants and avoid vacancy than squeeze the last possible $50 out of my rentals. They have said that they prefer to have tenants that know each other, which was why they told my friends about it first. Not that it really means anything since nothing is on paper, but the realtor said I'd get right of first refusal on the place. My plan right now is to point out that I'm working 5-10 minutes away from the place, don't have pets, will be alone, and will want to stay there to be near my friends. Plus how my friends are paying $200 less for a nearly-identical unit and that having a few more window doesn't really warrant that much extra. Should I only do this sort of negotiation in person or should I go ahead and start now over the phone before I go to look at the place in a few weeks? For all I know I'll never see the guy in person, just the landlady.
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Feb 14, 2015 22:40
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Zenzirouj posted:My plan right now is to point out that I'm working 5-10 minutes away from the place I'm not sure that telling them why this place is more valuable to you than to other people is going to make them willing to lower their rate.
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Feb 14, 2015 22:43
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I'm coming into ownership of a place in a green belt village near London (about 15 minutes out). It's not really a practical place to live unless you're a driver. I live overseas. We already own and rent a house in London proper. Thoughts on whether to sell, keep or why?
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Feb 15, 2015 20:56
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EB Nulshit posted:I'm not sure that telling them why this place is more valuable to you than to other people is going to make them willing to lower their rate. Uh, hmm. Good point. That occurred to me because of someone else's suggestion to make an argument based on me being a good tenant, since they could certainly find SOMEBODY to pay that much. So ultimately the main value I would provide is me being invested in staying and not putting much wear on the unit.
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Feb 15, 2015 21:02
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Beefeater1980 posted:I'm coming into ownership of a place in a green belt village near London (about 15 minutes out). It's not really a practical place to live unless you're a driver. I live overseas. We already own and rent a house in London proper. Thoughts on whether to sell, keep or why? My opinion would be to sell it because you can probably put the money to use better elsewhere.
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Feb 15, 2015 21:05
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My tenant called today to tell me the fence in the back yard blew over. Just one section failed from the big winds we had recently. It has been there since before I bought the place, and I am wondering how one determins ownership of a fence on a property line. FWIW the vertical posts are not visible, ie I see the "pretty" side from my side of the fence. The other property is a rental as well and the owners are hard to contact.
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Feb 16, 2015 01:20
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Where I live the presentable side of the fence should be on the outside. Whichever side has the hardware is the owner. That said, plenty of people don't follow that rule so your best bet would be to see about splitting the cost.
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Feb 16, 2015 02:41
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Mercury Ballistic posted:My tenant called today to tell me the fence in the back yard blew over. Just one section failed from the big winds we had recently. It has been there since before I bought the place, and I am wondering how one determins ownership of a fence on a property line. FWIW the vertical posts are not visible, ie I see the "pretty" side from my side of the fence. The other property is a rental as well and the owners are hard to contact. Get a survey done, put a new fence up and take their land. Then they'll be easier to get in contact with.
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Feb 16, 2015 02:48
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Beefeater1980 posted:I'm coming into ownership of a place in a green belt village near London (about 15 minutes out). It's not really a practical place to live unless you're a driver. I live overseas. We already own and rent a house in London proper. Thoughts on whether to sell, keep or why? That's pretty unknowable without information on the equation of what you could sell it for and what it will net you renting it internationally, and further what the hassle is worth to you. If you're already managing one property it doesn't seem like a second would be excessively burdensome especially if you're not on the hook for mortgage payments on vacancy, but if the cash value of the house is far outstripping rents or vice versa that could help you decide.
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Feb 16, 2015 06:16
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Zenzirouj posted:They have said that they prefer to have tenants that know each other, which was why they told my friends about it first. Not that it really means anything since nothing is on paper, but the realtor said I'd get right of first refusal on the place. My plan right now is to point out that I'm working 5-10 minutes away from the place, don't have pets, will be alone, and will want to stay there to be near my friends. Plus how my friends are paying $200 less for a nearly-identical unit and that having a few more window doesn't really warrant that much extra. Should I only do this sort of negotiation in person or should I go ahead and start now over the phone before I go to look at the place in a few weeks? For all I know I'll never see the guy in person, just the landlady. I'm not sure why they'd care or prefer to have tenants that know each other but I guess you have that going for you. What your friends are paying is somewhat immaterial; rental market conditions change and that argument coming from a prospective tenant is like saying you should get Apple stock for $X because someone who bought it a year ago got it for $X. Second, at least to me if the first thing I hear from a prospective tenant is bargaining about the rent it is sort of a red flag that they can't really afford it for whatever reason. Finally I don't know anything about your local rental market but I never deal with prospective tenants more than like a month ahead of the vacancy; I find that circumstances just change too much and any agreement or discussion you have where money and signatures do not change hands is pretty meaningless. The point is to say, I would definitely not want someone calling me up like weeks before they even plan to view the unit to haggle about the rent and I'd know I could pretty much without question wait for the usual 3-5 inquiries a day on the property once it is listed.
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Feb 16, 2015 06:50
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Beefeater1980 posted:I'm coming into ownership of a place in a green belt village near London (about 15 minutes out). It's not really a practical place to live unless you're a driver. I live overseas. We already own and rent a house in London proper. Thoughts on whether to sell, keep or why? Depends upon numbers.
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Feb 16, 2015 08:49
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BEHOLD: MY CAPE posted:I'm not sure why they'd care or prefer to have tenants that know each other but I guess you have that going for you. What your friends are paying is somewhat immaterial; rental market conditions change and that argument coming from a prospective tenant is like saying you should get Apple stock for $X because someone who bought it a year ago got it for $X. Second, at least to me if the first thing I hear from a prospective tenant is bargaining about the rent it is sort of a red flag that they can't really afford it for whatever reason. Finally I don't know anything about your local rental market but I never deal with prospective tenants more than like a month ahead of the vacancy; I find that circumstances just change too much and any agreement or discussion you have where money and signatures do not change hands is pretty meaningless. The point is to say, I would definitely not want someone calling me up like weeks before they even plan to view the unit to haggle about the rent and I'd know I could pretty much without question wait for the usual 3-5 inquiries a day on the property once it is listed. That was another thing I was wondering: when, if ever, I should bring it up. So then if I mention it at all it should be when I'm looking at the place when they clear out at the end of the month?
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Feb 16, 2015 21:32
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Azur posted:Depends upon numbers. Thanks for this and the other folks who made the same point. Just wanted to make sure there wasn't a hard and fast rule among property-owning people that I was unaware of.
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Feb 17, 2015 11:49
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I own a house I am considering renting out. I pay ~1600 a month in PITI on it. Rental value would be ~2200. House value is probably around 230k. House purchase price was 209. I'm right around the 1% mark. Is this a terrible idea?
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Feb 21, 2015 03:32
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Seems like a lot of trouble for $7000/year before expenses taxes and vacancy. It's not crazy and it would probably be a solvent operation but it's not an optimal deployment of capital. Also your insurance is going to go up when you convert to a landlord policy.
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Feb 21, 2015 03:51
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To me it seems like there's a lot of capital in one basket. Unless you have many more houses, which I doubt you do, I'd probably just sell the thing for 230k and put it in many blue chip stocks. They probably net you more on the long-term and they're almost 100% hassle-free. 700 a month would be around 3% annualized return, provided you have literally no vacancies or unexpected expenses. (Which aren't really unexpected because they will materialize at some point) The return isn't risk-free. You would probably have those vacancies which would eat your returns, and you can't forget about the troublesome renter-risk. Anyhow, now let's compare it to some blue-chips. https://www.google.com/finance?q=ge&ei=2zvoVNHnNuebwQOK5YDQAQ Here is General Electric. Notice the 3.65% dividend yield. GE actually makes twice the money they pay out, so the extra earnings go towards building a cushion and expanding the business. https://www.google.com/finance?q=NYSE%3AAEP&ei=qjzoVKKHCOacwgOqzYCYAQ Here is American Electric Power, a really loving dull utility company. Which is why I own some shares, because I think when it comes to investments, the unsexier it is the better. Also pays a 3.6% dividend yield, also makes twice as much as they are paying out. Anyway I could go on for a long time presenting individual stocks and these are only examples. In short, if you have no future plans for that house and you are owning it currently purely on a business mindset, I'd sell it and buy some dividend stocks. I don't know if it's the "optimal deployment of capital" BEHOLD: MY CAPE was talking about but I think it's a better one. If your house would net 2200 per month after PITI, then it would sound like a reasonable investment to me. Or you could also just put it in Vanguard funds if you want even less hassle.
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Feb 21, 2015 09:15
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lord1234 posted:I own a house I am considering renting out. I pay ~1600 a month in PITI on it. Rental value would be ~2200. House value is probably around 230k. House purchase price was 209. I'm right around the 1% mark. Is this a terrible idea? While on the surface this doesn't seem to be a great rental income equation, anyone giving advice would need a little more info in order to give informed advice. Please note that I am very biased towards rental real estate. If you don't want to disclose any of the answers in the thread that's fine I'll work with whatever you can give. Also feel free to PM me. Your house purchase price was 209, what is your current equity in your house? And what are your annual insurance and RE taxes? Based on what's going on nationally with housing prices, it kind of sounds like you bought the house within the last 5 or so years. While this is bad for a personal property, if you're converting this to a rental, look at your return based on your equity, not the total house value. You can also look at not just your cash flow return, but also the increase in equity due to you paying down that mortgage. What marginal tax bracket (fed and state) are you in this year and foresee being in the next 5 years? This is also very important. You may very likely have a taxable loss on this rental real estate venture over the next 5 years due to margins not being super high and factoring in actual costs such as repairs and things like depreciation. If you're in the 15% bracket, this loss won't be as useful as if you're in the 39.6% bracket. What regional market are you in? If you're in or around a major metro area, properties are generally easier to rent. If you're in rural Wisconsin, you will likely take longer to rent out. What condition is the house in and what major repairs do you anticipate having in the next 5 years? If you're going to need big dollar repairs/updates (ie roof, AC, etc) soon, this may be too painful. Are you planning on managing yourself, or are you having a property management company do that? This one will greatly affect the do or do not rent one. If you're doing it yourself, the answer will be maybe based on the above. If the answer is you are going to hire a property management company. Scroll up through the thread and read my post about how a property management company can turn a rental property with good to great returns into an overall money loser. Keisari posted:To me it seems like there's a lot of capital in one basket. Unless you have many more houses, which I doubt you do, I'd probably just sell the thing for 230k and put it in many blue chip stocks. They probably net you more on the long-term and they're almost 100% hassle-free. BEHOLD: MY CAPE posted:Also your insurance is going to go up when you convert to a landlord policy. Yes, it will definitely go up. However, insurance is so loving hard to predict because the insurance companies have private actuarial tables so insurance may go up a lot, or it may go up a little. If things are shaping out to be pretty good number wise, I'd get a quote. I've considered converting my personal residence into a rental when it's time for me to move out of my starter home (if I do) and insurance goes up like $200 a year. I do, however, have a lot of policies with my insurance company and based on my area insurance is low as poo poo. poo poo. That was a lot of words for "it depends" I hope you can provide us with numbers like this because I think both you and anyone reading this thread can get some good knowledge if we have good details.
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Feb 21, 2015 13:24
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If I can jump in as well I am in the same boat except I am already a landlord. The total mortgage is about $1950/month, house is probably worth $500k (DC suburbs) and rents currently for $2600/month. The mortgage is roughly 285k. I bought in 2009 and know the house well. I live 1/4 mile away and I am pretty handy, and I can tackle most maintenance issues myself. My wife and I are both working and we would probably be at the higher end of the tax tables. I am a little reticent to be a landlord but my wife and most everyone else think we should ride the appreciation wave in the area. I kind of feel like cashing out and selling the house before the capital gains would apply in 2017. Any thoughts? FWIW the insurance change from homeowners to rentsl property was less than $100/year with USAA.
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Feb 21, 2015 16:42
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If you are worried about capital gains, you could also use a 1031 exchange to defer the gains into another commercial property.
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Feb 21, 2015 19:36
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Bloody Queef posted:While on the surface this doesn't seem to be a great rental income equation, anyone giving advice would need a little more info in order to give informed advice. Please note that I am very biased towards rental real estate. If you don't want to disclose any of the answers in the thread that's fine I'll work with whatever you can give. Also feel free to PM me. Real estate tax: 3600 Insurance: 400 Bloody Queef posted:Based on what's going on nationally with housing prices, it kind of sounds like you bought the house within the last 5 or so years. While this is bad for a personal property, if you're converting this to a rental, look at your return based on your equity, not the total house value. You can also look at not just your cash flow return, but also the increase in equity due to you paying down that mortgage. Bloody Queef posted:What regional market are you in? Bloody Queef posted:Are you planning on managing yourself, or are you having a property management company do that? I plan to manage myself, as I plan to stay local. lord1234 fucked around with this message at 21:58 on Feb 21, 2015 |
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Feb 21, 2015 21:39
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For one, I have to apologize to lord1234. I asked him for a lot of detailed info in this thread that he provided and I totally slacked on answering him. He gave me a gentle nudge in a pm, and I promised him I'd post a more detailed response in the thread shortly. I think this was very early in the week. Work got the best of me and I could only browse SA from my phone, where its hard to do effort posts. Well here it is.lord1234 posted:Purchase at 209. I haven't had the house appraised recently get my figure, but I live in Austin where the real estate has gone up 13% since last year. I argue that its a bit less then that number, so took 10%, which puts me as having the current value as 229. I put 5% down on the house, so I have roughly 40k of equity total here. I'll summarize all the facts/assumptions to the best of my knowledge before the analysis (numbers rounded for ease) and please correct me if I'm wrong lord1234. Facts: Down payment on house: $10,500 Equity on paper: $31,500 House value today: $230,000 Rent Estimate: $2,200/Month RE Taxes: $3,600 Assumptions: Hot housing market, very easy to rent out. Just a hair over 2 weeks of vacancy per year, 4% vacancy rate. Brand new house, of good quality, in good condition. Generally we look at 1% of total house value in maintenance/repairs costs per year as a safe guess. Yours will probably be less, but will remain conservative here. No property management company, therefore no placement fees, will find tenants on free sites such as craigslist, etc. Insurance now: $400 Absolute worst case scenario for increase of cost for a non owner occupied property to $600 (if you get this quote this high, laugh in the face of your insurance agent and go somewhere else) Annual Expenses: Mortgage payment: $19,200 Adjustment up for higher insurance: 2,400 Maintenance: 2,300 Total: $23,900 Annual Revenue: 12 Months Rent: $26,400 Minus 4% Vacancy: (1,000) ( I rounded this, sue me) Total: $25,400 Return so far: $500 Well that definitely sucks. Probably not worth the effort and risk for that little of a return. A couple of notes: Worst cases used in insurance, that vacancy rate is what I use universally, and I am not in a hot market. Admittedly best case in terms of having a tenant that doesn't gently caress over the place or not pay rent. These are things that terrify me as a landlord, and aside from a few week or so late rent payments, I haven't had to deal with any bad tenants. A lot of it is luck, but most of it is screening your tenants REALLY REALLY well. Which is why even if I went with a management company I would insist on screening tenants (actually my wife, she's the one that has an eye for interviews, I just want a warm body with a check in hand) We haven't looked at taxes yet. Let's look at your taxable income: I don't know your interest rate, I'm guessing 4% but you're in year 1 of a mortgage iirc, so most of your P&I is going to I, let's say total P&I of $1,000 with $300 each month going to principal, and $700 going to interest. Interest Expenses: $8,400 RE Taxes: 3,600 Insurance: 600 Maintenance: 2,300 Depreciation: This is more complex than I'm letting on, but we'll say your house price was 40% land and 60% Land improvements (you can get this info from your property tax statement and its a reasonable basis to use. If you disagree with this assesment, feel free to calculate one yourself, but be prepared to defend it. Totally not worth it in the case of a 200k house imo) So basis in the house itself without land is $125,500. Residential real estate gets a 27.5 year life, straight line. So 4,536 but let's keep rounding and go with 4,500. If you made any improvements to the house after buying it IE carpet, landscaping, etc you can now depreciate those too, but let's say nothing. Taxable Revenue (all of it received): 25,400 Taxable Income: $10,500 Tax Liability: (@ 28% marginal rate) is $2,940 (TX is a no income tax state, iirc) Total cash on cash year 1 LOSS is $2,400. Yowzers. That hurts. A loss? But you did all this stuff and how can you lose money on this? Obviously you shouldn't rent this house out. Nah. That's your cash on cash return. And it's year 1 of a business venture. Let's look at total return. Cash on cash loss of (2,400) Reduction of mortgage principal: (estimated 300/month principal reduction *12 months) 3,600 Increase in house value: I've heard tons about the Austin market going up another 10-15% in the next year, and since we're looking at non cash fairy numbers, let's go with 5% to be a little more conservative. 11,500 That's a total return of $12,700. We're getting in the neighborhood of decent investments here, and this is just year 1. Hopefully in year 2, you would try to see a higher rental rate. Circling back to return rates, you're getting 12,700 on 31,500 of equity, 40%. If any of my calculations or assumptions are off please let me know lord1234 or the rest of the thread. Realities of rental real estate change so much from market to market and I only have active participation in 2 markets which are not Austin. I only get knowledge of other us markets based on other landlords. There's a lot of levers here, and moving the right levers the right way can make this prospect even better, moving the wrong levers the wrong way could make this a bad choice. Before going off and renting I would do the following: Get an actual quote for insurance. Make sure you have at least 6 months of expenses set aside (so about 12k based on my calcs) Read up in depth on local tenant/landlord law Do a lot of searching on comps maybe 2200 is too much, maybe its too little. If you're afraid of what being a landlord is like, offer up a 3 or 6 month lease. These get snatched the gently caress up instantly on craigslist, and it can give you a taste of the realities without you over committing yourself. Ask more questions in this there, there's a gently caress ton of knowledgeable people in here and some even make their entire income on landlording. Edited because I didn't do math good in the last calc. Bloody Queef fucked around with this message at 19:14 on Feb 28, 2015 |
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Feb 28, 2015 15:07
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I don't know about you, but I would not want a cash flow negative rental property where my theoretical return was driven by future increases in property value.
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Feb 28, 2015 17:32
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BEHOLD: MY CAPE posted:I don't know about you, but I would not want a cash flow negative rental property where my theoretical return was driven by future increases in property value. It's no doubt a speculative play that I wouldn't make in a soft housing market. It's up to Lord1234 if he thinks it's worth it. I may have to relook at the numbers because I feel odd about him being in taxable income with the property in year one. None of mine have worked that way, but I also go through all the assets in the house at the time of acquisition (carpets, VCT, everything in the kitchen) and spike them out of the whole house depreciation bucket and into shorter lives. Probably don't do this without the guidance of a tax professional, by the way. E: I was being dumb and was subtracting the payments towards principal if his mortgage instead of adding them. This does keep him positive on a non cash basis before factoring in appreciation of the property. I fixed the math above. Next time I will do this in Excel and paste that in here instead of doing my math in a text box. Bloody Queef fucked around with this message at 19:16 on Feb 28, 2015 |
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Feb 28, 2015 19:11
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BQ - That's a very nice breakdown of a bunch of the numbers. I'm not intimately familiar with the taxes and numbers involved with this sort of business, but I am under the impression that the rental business is all about cash flow. The number I've heard is that you want to be cash flowing 10%. I am under the impression that the residual value of property isn't normally part of the calculation. I think the 5% appreciation figure might be accurate for next year, but in the long term that is a very optimistic figure. You're also not accounting for the costs involved in selling a property with real estate agent fees and closing costs. If you assume just a 7% haircut to sell the house, you're looking at ~16k on a 230k house sale.
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Feb 28, 2015 22:20
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I think his insurance is currently $400/year, and you're assuming it's $400/month. (Based on your $2,400 adjustment). $600/month for insurance would be insane.
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Feb 28, 2015 22:47
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n8r posted:BQ - That's a very nice breakdown of a bunch of the numbers. I'm not intimately familiar with the taxes and numbers involved with this sort of business, but I am under the impression that the rental business is all about cash flow. The number I've heard is that you want to be cash flowing 10%. I am under the impression that the residual value of property isn't normally part of the calculation. I think the 5% appreciation figure might be accurate for next year, but in the long term that is a very optimistic figure. You're also not accounting for the costs involved in selling a property with real estate agent fees and closing costs. If you assume just a 7% haircut to sell the house, you're looking at ~16k on a 230k house sale. Many real estate investors use residual value in their calculations. I kind of hate using it, but completely ignoring it doesn't show the picture whatsoever. So I use it with a mental (but yeah, that's not really how good it is) Agreed on the selling costs, but his option, I believe, is sell VS rent, so I just left those out. Blackjack2000 posted:I think his insurance is currently $400/year, and you're assuming it's $400/month. (Based on your $2,400 adjustment). $600/month for insurance would be insane. You are right and I'm a complete idiot. This is why I'm happy you guys could check my poo poo. I wasn't thinking about why his insurance would be so high, I just put the number down. In order to not muddy up my original post, I'll just re do the calculations below: Bloody Queef posted:Annual Expenses:
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Feb 28, 2015 23:17
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BQ: Thanks for the awesome analysis. Seems that based on this(especially given that I plan to stay in the home for another year/build more equity) that its a no brainer to rent this place out?
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Mar 3, 2015 15:42
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lord1234 posted:BQ: Landlording is not for everyone. I wouldn't call any situation a no brainer. But it makes sense financially if you have the stomach to be a landlord. Remember, you're trusting someone you don't know with a 6 figure asset that you own and are responsible to make payments for that they could destroy utterly and have very little repercussions.
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Mar 4, 2015 01:04
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Does anyone have a good lease agreement for a Roommate in Texas? My wife and I are renting out a spare bedroom in our home, and want to make sure we are covered. Also, to be on the up and up, should we contact our homeowners insurance provider and tell them? Would we be looking at an increase in our homeowners cost?
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Mar 6, 2015 16:07
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DogsCantBudget posted:Does anyone have a good lease agreement for a Roommate in Texas? My wife and I are renting out a spare bedroom in our home, and want to make sure we are covered. Also, to be on the up and up, should we contact our homeowners insurance provider and tell them? Would we be looking at an increase in our homeowners cost? Can't help you on a Texas specific lease, google is your friend on getting a generic lease agreement. Sprinkle in any TX necessary stuff. Absolutely contact your homeowners insurance. Your insurance will totally deny a claim if something happens. Will it increase your cost? Maybe? Probably not by much. A separate landlord policy is required if you're not residing in the property, but you are so sometimes a small rider can be added. If you're paying anything more than a 10% increase, shop around. We have an attic unit in my house (in Delaware) and we had no additional cost for the rider on our homeowner's insurance. But make 100% sure you are up on state and local landlord/tenant laws. And also zoning as it relates to renting out a spare room. Local laws on this poo poo are all over the map. Are you renting to someone you know? Even if you are, absolutely POSITIVELY do both a background and credit check. mysmartmove.com is a good one if you're doing one offs. It's a transunion company so you're not sending their info to some skeezy fly by night operation. You can even set up the background check and they can enter their more sensitive information like SS number on the website. It's $10 for basic and I think the one that adds eviction listings in is $25. If there's any pushback, bust out the "Well, I wouldn't do it and I trust you, but my insurance company requires that I have it on file" bullshit. Of course screen carefully, its better to sit on a room unrented than have a loving nightmare of a tenant. If you decide to go through with it, I can write up a larger effort post on what to do from a tax perspective. E: and on a personal note, as a follower of your thread, I am proud that you are looking into alternative options for meeting your goals. Bloody Queef fucked around with this message at 20:54 on Mar 6, 2015 |
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Mar 6, 2015 19:52
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DogsCantBudget posted:Does anyone have a good lease agreement for a Roommate in Texas? My wife and I are renting out a spare bedroom in our home, and want to make sure we are covered. Also, to be on the up and up, should we contact our homeowners insurance provider and tell them? Would we be looking at an increase in our homeowners cost? Dude don't do it. You make loads of money just keep paying your stuff down.
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Mar 7, 2015 16:14
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Bloody Queef posted:Landlording is not for everyone. I wouldn't call any situation a no brainer. But it makes sense financially if you have the stomach to be a landlord. Remember, you're trusting someone you don't know with a 6 figure asset that you own and are responsible to make payments for that they could destroy utterly and have very little repercussions. I feel like I can do this. Many people I have experience with have been long term landlords of single family units and have made decent money with relatively little hassle. Of course I understand that isn't a guarantee of my own success. But here's hoping? lord1234 fucked around with this message at 15:49 on Mar 8, 2015 |
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Mar 8, 2015 15:39
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