Financial Problems in MarriageWhen financial times are tough, it adds to the stress we deal with on a daily basis. This section is for talking about how financial problems affect our relationships and ways to cope.
We can make a tiny profit (<$5000) on the house, short term... Sell now. Or we can build a small nest egg over time. Our mortgage is manageable, and we will be able to rent it out for about $400 profit a month.
Any nightmare stories about renting? Our house was a rental nightmare, thats how it ended up on the market 4 years ago when we bought it. But is it really that common a thing, to have bad renters? Can you minimize the risk... Background check I know... What else?
The realtor just left.. just trying to get some thoughts. We're leaning towards renting it, at least trying it for a year. What's the worst that can happen in that year? I don't know.
All the wealthiest people I know got there in large part on rental revenue, but of course it was the inflating housing economy that made it worth it. What is the housing market like there?
Renting is big all over because so many in foreclosure. If you have some saving for the nightmares. It happens. 400 a month would be what 4800 a year that is not bad. One nightmare could eat up 4 to 5 x that in a heart beet.
I don't know where you are, but where I am, houses have been sitting around for about a year before they're sold. You might as well rent. You have the right to draw up your own contract with the renter and can include regular inspection of the facility and clauses for eviction in case of property destruction. Posted via Mobile Device
I have just left property management after 8 years in it. I imagine people are the same in most of the world so if you do decide to rent please detach from the property. It is a building, not a part of you!
Landlords who lived in their property are the worst for thinking that a tenant with just a little bit of stuff on the floor are destroying their house. It would be best to get an agent to manage it at arms length for you and I imagine they do checks on prospective tenants.
That's just it. I know we can rent it out for that little profit/monthly. And we know we can sell it and break even at least. But if we can hold on to it for a few, we could make a killing off of it. We put way too much work into it for our neighborhood and for the market, we know that, but it was for the intention of us living in it for life too Oh well, things change.
Renting is big all over because so many in foreclosure. If you have some saving for the nightmares. It happens. 400 a month would be what 4800 a year that is not bad. One nightmare could eat up 4 to 5 x that in a heart beet.
So this is what I've been worried about... and I honestly think the worst thing that can go, and the most expensive, is the HVAC ($3400 is what we've been quoted should it go, but it's only 7 years old). Everything else is pretty solid... No carpet to get damaged, hardwood and tile throughout, all new appliances, new roof, new windows, etc. My H is Mr. Fix It, so should the hardwoods or tile or drywall or whatever get damaged, he can fix it up with a trip back here. Any other major mishap should be covered under insurance (renters and homeowner), I would imagine. Are there other expenses related to renting to someone that I'm not aware of?
Bella - I've already thought of having someone manage it, how much is that, roughly? Oh and I've detached from the property, the opportunity we've been given with this relocation overshadows this particular home
In this market, I'd probably rent. I know there is a risk of damage, so a background check is almost necessary. Make the potential renters pay for the background check!
I'd love to sell the house and move on a farm nearby. However, we'd be taking a huge cut in equity.
Hopefully the housing market will pick up in a few years. We put at least 20% down on our house and right now i bet we wouldn't get 1/2 that back.
My experience with renting is to use an agent and s*ck up to paying their percentage as they can do the dirty work of being firm when your renters have 'sob stories' that somehow should excuse them from the rental papers they signed, because they are 'nice' and so you should be too.
You should also consider the amount of time you will have to spend keeping up with paperwork and also maintenance and repairs and then risk of flood, wind storms, etc.
$5000 is a sure thing if you sell...
If you had $5000 in your pocket RIGHT NOW would you choose to invest in real estate assuming that you could, without any barriers or costs to entering such an investment, or would you choose to invest it elsewhere?
You should also consider the amount of time you will have to spend keeping up with paperwork and also maintenance and repairs and then risk of flood, wind storms, etc.
$5000 is a sure thing if you sell...
If you had $5000 in your pocket RIGHT NOW would you choose to invest in real estate assuming that you could, without any barriers or costs to entering such an investment, or would you choose to invest it elsewhere?
Our area was hit hard by the worst flood in our city history back in 2010... Our neighbors across the street didn't fare so well.. Our home was untouched. Right up the street, the interstate was under water with buildings floating down it. But I'm not so worried about all that -- Our insurance is $500/deductible for any kind of disaster situation.
To be honest, while we could use the $5000, it would go towards living... Nothing special we would need to use that for. And I think that's why I'm not too excited about that selling, when I know we could get that amount by renting it out for at least a year anyway and should the housing market come back up, our house would easily go for $20K more... In fact, it's fluctuated on Zillow for the past few years by $10K here and there.
I'm really leaning towards renting with an agent at this point.
My $.02 - sell it quickly! I have 2 rental properties, and I'm looking at selling both of them. I hate being a landlord.
Florida 5 acre horse ranch rental - property manager handles everything. Let's just say it's not all that great.
Local duplex rental - we manage it. upstairs unit has great tenant, pays on time. downstairs tenant is on track I think. previous tenants in both units - downstairs moved out without notice, and upstairs we had to evict. upstairs tenant had used it as brothel - neighbors called to tell me people were having sex in driveway.
Bottom line - both of my rentals have turned into a nightmare. I've been late paying the mortgage a couple of times, cause I'm waiting for them to pay me.
On the flip side - friends of ours used their house as a rental. Found a great military family to move in for 2 years with no issues.
Cherry, I deal with large scale rental properties from a gov't oversight perspective. Feel free to PM me if you'd like.
A few things to consider:
How far away are you going to be living from the house that you'll be renting? Will you be able to spot check your renters to make sure that they aren't damaging your property? Read up on the rental laws for your state, and what you can/can't put into a lease. You'll likely want an attorney to review your lease to make sure that you are protected and to make sure that you aren't violating any lease/rental laws.
In terms of prospective renters... credit check, personal references, employment references, and prior landlord references are pretty much a must. You'll also want to know that your prospective tenant can afford to pay the rent that you are asking, typically housing expense of 30% of income is the accepted norm, though it's a guideline in terms of personal rentals.
I'll hush up now, but like I said, feel free to PM me if you have questions that I might be able to help you with.
So this is what I've been worried about... and I honestly think the worst thing that can go, and the most expensive, is the HVAC ($3400 is what we've been quoted should it go, but it's only 7 years old). Everything else is pretty solid... No carpet to get damaged, hardwood and tile throughout, all new appliances, new roof, new windows, etc. My H is Mr. Fix It, so should the hardwoods or tile or drywall or whatever get damaged, he can fix it up with a trip back here. Any other major mishap should be covered under insurance (renters and homeowner), I would imagine. Are there other expenses related to renting to someone that I'm not aware of?
Bella - I've already thought of having someone manage it, how much is that, roughly? Oh and I've detached from the property, the opportunity we've been given with this relocation overshadows this particular home
Sorry Cherry, I am in Australia so I imagine it is different in the US. I know you can negotiate the percentage charged here so you probably can there as well.
One other thing to think about is that the $400 "profit" a month isn't always profit. You need to have a chunk put away for things like the mortgage for months the house is unoccupied, new appliances/repairs should they break down, cleaning, painting and other general maintenance. Your husband may be able to do the work but materials needed for getting a house rental-ready quickly between tenants can be quite a chunk to spend all at once. Also, I don't know where you live, but you may need to absorb other costs like lawn care, snow removal and general utilities either to ensure that your lawn/trees are killed or to maintain the property from a distance when it's not occupied. The security deposit can help offset things like that, but you can't count on it covering every potential expense.
You'd be amazed at the stuff people can break....my ex-MIL has rental properties and one time the tenants took off all the doors in all the rooms and closets. No idea why, but they stored them out on the patio by the carport and by the time they moved out the doors were pretty much ruined by heat, snow and knocking around. So not only did she deep clean the place and re-paint, but she had to buy new doors for every interior doorway. Or another time the kitchen counters had to be redone completely because apparently the people cooked A LOT and put the pans directly on the countertop with no hot pad or cutting board or anything. Looked like hollow polka dots all over the place. On the other hand though, she's had several tenants that were great, paid on time, kept up the place. But it seems like when something goes wrong, it goes freakishly wrong. Or maybe those are just the stories that get told, right?
Rentals can be an excellent investment, but you have to be aware that they aren't pure profit.
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Sell or rent? 
Oh well, things change. 
