Question on renting out a house.

[Rusty Syringes 478]

We're buying new house, a great little place in the country. Our current house is on the market, but we're thinking about renting out the focker.

 

Has anyone done this? What are the pros and cons? Can you rent it out for more than your monthly mortgage payment? How do you insure it? Does it cost more or less to have insurance on a rental? TIA.

[gratefulted 14]

We're buying new house, a great little place in the country. Our current house is on the market, but we're thinking about renting out the focker.

 

Has anyone done this? What are the pros and cons? Can you rent it out for more than your monthly mortgage payment? How do you insure it? Does it cost more or less to have insurance on a rental? TIA.

Do not do what I did, do not rent to friends or relatives, get a property mangement company to take care of it, charge whatever the market allows you to, if you can make somewhat of a profit, great.

I rented to a friend and ended up letting them slide time after time. I ended up forceably throwing them out after them owing me bout $10,000.00 plus wrecking the house, it was one of the many worst mistakes of my life!

 

DO NOT GET IN ANY PERSONAL RELATIONSHIP WITH YOUR RENTERS!!!

[Ravens 03 0]

We're buying new house, a great little place in the country. Our current house is on the market, but we're thinking about renting out the focker.

 

Has anyone done this? What are the pros and cons? Can you rent it out for more than your monthly mortgage payment? How do you insure it? Does it cost more or less to have insurance on a rental? TIA.

 

Many friends of mine have done this.

 

Insurance when you move out will be more as you will have renters, but not that much.

Rent = Market value. Whatever you can get.

If you go month-to-month - expect to get some 'issues' with the people.

Make it clear to the renters that the place is for sale and visitors will be coming to inspect.

Try to emphasis they need to keep it orderly & clean.

Get a good security depoist because you just might need it.

I would say visit regularly [pretend to be fixing something] so you can keep an eye on it.

 

Good luck.

[Rusty Syringes 478]

Great advice, guys. No way would I rent to family or friends, and we would go through a property management company, if only so they could conduct a thorough background check of the prospective tenants and handle all that crap. Based on what I'm seeing on the market, and there ain't much in Buttmont right now, we could probably make $400 to $500 over what our monthly note is right now. We would take the house off the market and require a one-year lease with the deposit matching one month's rent.

[spork in the road 2]

You might want to look into how renting the property will affect your mortgage payment (on the original property). I know banks charge more for investment (rental) property than they do for a primary residence. Of course if it was just short term I'm not sure how they would find out.

[Toro 1]

Don't rent to Canadians.

[mulletia 0]

Do not do what I did, do not rent to friends or relatives, get a property mangement company to take care of it, charge whatever the market allows you to, if you can make somewhat of a profit, great.

I rented to a friend and ended up letting them slide time after time. I ended up forceably throwing them out after them owing me bout $10,000.00 plus wrecking the house, it was one of the many worst mistakes of my life!

 

DO NOT GET IN ANY PERSONAL RELATIONSHIP WITH YOUR RENTERS!!!

I rent from my neighbor who si a close family friend, and while I get away with some things, I am more conscientious of how I treat hsi space because he is close with my family and wouldn't want to disrespect his space

[dirty dug 0]

Rent to a frat, they're always very responsible.

[cgod 0]

Provide a clause in the rental agreement that the occupants could be thrown out with minimal notice if any geeks were to visit Buttmont and needed a place to stay.

[mulletia 0]

if you'd liek to get more exposure for your house perhaps nationally rent it to any usc athlete, they seems to be making headlines lately

[gratefulted 14]

I rent from my neighbor who si a close family friend, and while I get away with some things, I am more conscientious of how I treat hsi space because he is close with my family and wouldn't want to disrespect his space

I thought they would do the same for me, I was even the godfather to all 3 of thier kids, when I went to throw them out I saw they had 2 new cars and new bikes for all

 

They were not Canadians, they were f'n texans

[dirty dug 0]

if you'd liek to get more exposure for your house perhaps nationally rent it to any usc athlete, they seems to be making headlines lately

 

Plus, they always pay their rent.

 

 

BTW, have you considered turning it into a crack house for additional income?

 

[Rusty Syringes 478]

I meant to say "one-year lease."

 

:dumbass:

[mulletia 0]

I thought they would do the same for me, I was even the godfather to all 3 of thier kids, when I went to throw them out I saw they had 2 new cars and new bikes for all

 

They were not Canadians, they were f'n texans

I was a month late with my rent once, but then i made it up to my Ll by paying the next three months in advance, he seems to like that and so do I

 

 

Plus, an unnamed booster always pays their rent.

 

 

BTW, have you considered turning it into a crack house for additional income?

 

 

 

fixed that for ya

[dirty dug 0]

I was a month late with my rent once, but then i made it up to my Ll by paying the next three months in advance, he seems to like that and so do I

fixed that for ya

 

 

It was a named wanna be agent who the family never paid and were evicted, not a booster!

 

[mulletia 0]

 

It was a named wanna be agent who the family never paid and were evicted, not a booster!

 

right, and that girl sexually assaulted herself while sanchez just happened to be there

 

every single decent player on every D1 football team gets some sort of compensation for being athletes

 

as a buckeye fan I know jim tressel goes recruiting like this:

 

what? I don't know anything about that escalade in your driveway leased in your grandmother's name, with the big bag of money and hot slut in the back

[sawilson 1]

Provide a clause in the rental agreement that the occupants could be thrown out with minimal notice if any geeks were to visit Buttmont and needed a place to stay.

[dirty dug 0]

right, and that girl sexually assaulted herself while sanchez just happened to be there

 

every single decent player on every D1 football team gets some sort of compensation for being athletes

 

as a buckeye fan I know jim tressel goes recruiting like this:

 

what? I don't know anything about that escalade in your driveway leased in your grandmother's name, with the big bag of money and hot slut in the back

 

Well, the Sanchez case is not as you portray it. Apparently she was waiting for him in is apartment and there is a witness who claims it was definitely consentual. As of now Sanchez has not been charged with anything.

 

I realize there is a butt load of shady things that go on in major college ball, but the Sanchez case, IMO, is a girl who is crying wolf. And I seriously doubt USC had knowledge of the Griffen's deal (Bush's parents), that was outside their control.

[swirvenirvin 25]

Make sure you have a postive cash flow is the main thing

 

Thinsg you shoudl include or figure out if about a 7% vacancy so make sure and figure that in to be safe

 

Charge enough so you are covering your mortage( and taxes if not included), your insurance, and any property management company you use.

 

You can always have them take care of teh lawn and and misc things that go wrong in the house, but it would have to be a handyman. Not alwayts a good option because if they break something more than they fix it, they can say well i was trying to fix it myself you cant charge me more $$$ etc. So do it yourself or hire someone to do it all. Usually on your first rental you should do most of it yourself, especially since its your old housde you know it best.

 

Make sure you get credit reports on anyone you consider renting out to, nothing worse then a deadbeat.

Pets are usually $25-50 more a month.

 

Your new house should be able to cover your insurance on your rental, if not find a new insurance compoany that does, you can usually cover up to 3 rentals on your home insurance, as your are just covering the structure not what is inside.

 

Not sure who said something about mortage going up, but it will not if you are locked in under your mortage, if you refinanced then it would go up to a higher %, but if you have whatr you have right now and are happy no need to worry.

 

There is a bunch more of stuff this is just off the top of me head

 

just email me for any specific questions hopefully i can answer them

[Cdub100 3,435]

Dirty mexican

[Ravens 03 0]

Oh and Rusty - REQUIRE the tenants to have renter's insurance.

 

HTH

[TimmySmith 2,782]

Make sure you have a postive cash flow is the main thing

 

You do not necessarily need a monthly positive cash flow though. Realize that after all tax write-offs, you can see a yearly positive even if you are short each month. I rent a house for about a $200 monthly deficit and get it all back at tax time.

[Ravens 03 0]

You do not necessarily need a monthly positive cash flow though. Realize that after all tax write-offs, you can see a yearly positive even if you are short each month. I rent a house for about a $200 monthly deficit and get it all back at tax time.

 

I think people overlook this alot. Depreciation expense on the tax return creates cash flow right there.

 

Plus Rusty can deduct every trip to the Home Depot as a business expense and say it's for work on his 'rental property'. Keep those receipts Rusty.

 

 

[remote controller 136]

Being a landlord is not easy. Make damn sure you wanted the added stress. Some very good advice above.

[Walter34 3]

I think people overlook this alot. Depreciation expense on the tax return creates cash flow right there.

 

Plus Rusty can deduct every trip to the Home Depot as a business expense and say it's for work on his 'rental property'. Keep those receipts Rusty.

 

The other advantage with this is that continue to accrue equity on the old house. When you do sell, you own more of it than the bank.

 

No students. Try and make sure its as little work as possible. See several rental agencies and see what the deal is.

 

Rent it out to TRF and his smokin ass secretary!

[Super Cubs 133]

How many sq feet?

What part of Buttmont is it in?

And how much storm damage did it get from Rita?

[avoiding injuries 1,233]

I have two rentals. One has been great with very minimal up keep. The other has been a nightmare. It comes down to your tenants. Choose wisely. Do you see the property appreciating much in the next few years? That would be the only reason I would rent it out unless you are considering moving back. I needed to let my mtg co and ins co know that I was renting it out. You could cut corners, but if something happens to a tenant or visitor on the property it won't be worth it. I am lucky enough to get more in rent then my mtg+ins+taxes. You do get a tax break, but you also have to claim the rent as income so it balances out.