Renting

Tonight, just for kicks, I posted on the local afb spouses page to see what people thought I could honestly get if we rented our house. No offer yet, and no showings this weekend, and oh by the way, we’re moving forward at lightening speed on the new house.

I instantly got tons of responses. 1000-1200, which would cover our new mortgage and a hefty chunk of the old one, so we would net out in the win for sure. I also had two people who were basically begging me to rent it to them. i have a waiting list for a house that isn’t even for rent and might not be for rent.

Pros:

1.) Investment properties are good, and we would just continue to pay down on the mortgage making it even more profitable to sell later.

2.) By renting to military we’re almost guaranteed a respectable renter who would take care of the property because they know how much shit they would get into with their commander if they found out otherwise

3.) Guaranteed mortgage payment every month. We could try to sell later when the market is better.

Cons:

1.) Ugh. renting.

3.) Paying capital gains on it later if we do decide to sell it

4.) having to make any huge repairs and making sure we have the funds on hand at all times to do so

5.) Paying taxes on the rental income yearly.

Anyone here have a rental property? Give it to me straight. How awful is it to be a landlord?

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16 thoughts on “Renting

  1. I have no personal input on this, but I truly hope that it works out for the best and that you’re able to make some money off of that place no matter what!

  2. We have a rental property, and it’s not too bad. Our place is near a local university, so we’ve predominantly rented to college students, which can be a little risky. All things considered though, we’ve never had any major issues in the last six years. You’ll probably get a tax break, actually, because you can deduct the interest from both properties.

    Our appliances aren’t too old, and we’ve been lucky we haven’t had to make a ton of repairs. Most tenants stay a year but we’ve had a few groups stay for two. Most of the time we just have to get in and clean, maybe have the carpets cleaned, etc. in between new renters. It’s pretty low-maintenance.

  3. This is great! It is an option at least. Rental properties are fine if you have good tenant that don’t nitpick about every little thing and a low maintenance house. That is the best combo. You could always try it then list it to sell again if renting it sucks…

  4. We have two rental properties — four apartments in all — and I can honestly say that landlording has minimal impact on our lives. We’ve been lucky to get mostly good tenants, and that is key. For me the most stressful thing is when someone’s lease is up and we need to find a new tenant. I always worry the apt will remain unrented until the end of time and we’ll go into financial ruin. But seeing as you already have interest that shouldn’t be a problem. For us, it’s been an overall good experience.

  5. If you’re likely to find good tenants and the rent will more than cover the mortgage, I would definitely rent. You’re likely to come out ahead in the end.

  6. I think owning investment property is always a good idea. You can buy a home warranty to cover any appliance or hvac issues.

    • I’ve now had four offers in two days, though the fourth one wouldn’t work out because they need a place in two weeks and we can’t be out that soon. I think where we are with it is we’re going to keep it on the market probably through mid October and then we’ll pull it and rent it.

  7. We rent out one of our homes but have a management company do everything. It has worked out really well for us and we have been doing it 4 years now. There have been a few things where we needed to fix things immediately (the whole HVAC system in the dead of summer) but the management company has a ton of connections and gets good deals on everything. Good luck!!

  8. I’ve been a landlord for several years and it’s great. I would definitely speak to an accountant because you can also depreciate the home over 27.5 years, which should give you a pretty good tax break on the rental income.

  9. We’ve already chatted about this via FB but we haven’t found it to be bad at all. We also have military renters and they are fantastic. Our house is always well taken care of. We’ve gotten a call here or there to come fix something, but other than that, all has been good!

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