re: Being a Landlord

quote:

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180,000 and 1800 a month. Ive lived in this for 10 years, saved enough and bought another house. I could sell this and take money or rent it and be paid for in 10 years

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What did you buy it for? You need to look into the 5/2 rule and I would suggest spending the $300 to meet with a CPA to see if this is going to severly hurt you.

My guess, you don't want to rent for more than 36 months. If you sell it with it being your primary residence for 2 of the last 5 years you can avoid capital gains. If the home is worth $180k now you likely bought for what $120k? That means you'd owe income tax on $60k after 3 years plus 3 years of depreciation at I believe a 15 year schedule, so it would actually be around $96,000 in income? My math may be off.

Given that, get a rental application and force 5-10 years of job history. Don't rent to anyone that hasn't routinely had a job for 2+ Years in a row, the same job that is.

Chances are someone with a college degree that has a good job history will be a good tenant as far as taking care of the place and paying rent on time.

Make sure you are VERY firm on late rent payment and charge it immediately on the 6th day or whenever its due. not a day late EVER or they will pay you a day late every time.