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Started By
Message
Renting instead of selling
Posted on 3/1/13 at 10:09 am
Posted on 3/1/13 at 10:09 am
We're thinking about upgrading our home soon and I am interested in the idea of renting our current house instead of selling it. Assuming I can get financing, does anyone have any good resources to read about renting a home?
Some of the questions I have are:
Could I convert ownership of the rental to our LLC?
The house won't be far away, should I try to self manage or hire a company?
What's the minimum dollar amount over cost that I should consider renting for? (i.e. If I can't get $200/month, it isnt' worth it)
Some of the questions I have are:
Could I convert ownership of the rental to our LLC?
The house won't be far away, should I try to self manage or hire a company?
What's the minimum dollar amount over cost that I should consider renting for? (i.e. If I can't get $200/month, it isnt' worth it)
6
Posted on 3/1/13 at 10:24 am to seawolf06
(no message)
This post was edited on 3/28/13 at 6:31 pm
Posted on 3/1/13 at 10:39 am to seawolf06
quote:
Could I convert ownership of the rental to our LLC?
Title can be transferred through a quit claim deed to your LLC.
Is this house paid off? If not some mortgage companies want a full payoff (due on sale clause) if they find out you have done a title transfer.
LINK
quote:
What's the minimum dollar amount over cost that I should consider renting for? (i.e. If I can't get $200/month, it isnt' worth it)
200 PCF is my bare minimum after PITI, fees, and never forget vacancies and maintenance. They will happen just a matter of when.
Posted on 3/1/13 at 10:52 am to seawolf06
Whatever you decide, I would get a good property management company to save you the headache. My dad and uncle had a rental property when I was younger and gave it up as soon as it would sell because of the tenant headache.
Posted on 3/1/13 at 12:24 pm to Queen
quote:
I would get a good property management company to save you the headache.
that is fine as long as it is not affecting his minimum PCF. He will have to run the numbers.
Posted on 3/1/13 at 2:31 pm to Fat Bastard
quote:
that is fine as long as it is not affecting his minimum PCF. He will have to run the numbers.
This is true. Definitely shop around. Some charge a flat rate, some a percentage. Check out your options.
Posted on 3/11/13 at 8:40 pm to seawolf06
Handle this yourself. Why give part of your rent income to a third party. I have 3 rentals and have been fortunate to have had good tenants. Be specific in your lease as to what you'll do and what is expected of the tenant. Example, if you are gratuitously furnishing a washer and dryer, let it be known that any repairs are the tenants responsibility. Get 1 month's rent as a security deposit. Good luck.
Posted on 3/12/13 at 8:08 am to seawolf06
quote:
What's the minimum dollar amount over cost that I should consider renting for? (i.e. If I can't get $200/month, it isnt' worth it)
At least 10%, after all expenses.
Posted on 3/12/13 at 11:40 am to PhillyTide
quote:
At least 10%, after all expenses.
I'd say more like 20%, but YMMV
Posted on 3/13/13 at 8:51 pm to seawolf06
I did it seawolf...didn't do an LLC or anything like that, but it might be something I should look into... I'm bringing in 1350 ...my mort+ins+tax(bigger tax bill now) runs me about 875.... My tenants asked for $100 less than what I was asking if they signed a 2 year lease, no brainer...they have only called once.... working out really well....
here's a tip, leave some mouse poisen pods in your attic before you accept tenants b/c that is something that could get out of control and you can't really be there to police it...that will keep them gone forever
here's a tip, leave some mouse poisen pods in your attic before you accept tenants b/c that is something that could get out of control and you can't really be there to police it...that will keep them gone forever
Posted on 3/14/13 at 1:38 pm to Motorboat
quote:
I'd say more like 20%, but YMMV
most savvy investors require a MINIMUM of a 12% cash on cash return the first year with a CAP RATE of around 10+ (of course this cap rate can be hard to do in some instances due to certain factors).
Posted on 3/14/13 at 1:45 pm to seawolf06
Sell and invest the money. The return will be greater over time.
Posted on 3/14/13 at 2:01 pm to ljhog
quote:
Sell and invest the money. The return will be greater over time.
and how do you know this? link?
Maybe he wants the PASSIVE income, equity capture, market appreciation, principle paydown,and tax advantages. You think he will get the same from a dividend paying stock or fund using the same amount? can you guarantee that for him?
This post was edited on 3/14/13 at 2:05 pm
Posted on 3/16/13 at 9:38 pm to ljhog
quote:
ljhog
still awaiting your response
Posted on 3/19/13 at 9:35 am to ljhog
quote:
ljhog
ok, since you cannot answer I am going to have to tell you you do not know WTF you are talking about. sorry.
This post was edited on 3/20/13 at 7:34 am
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