Rental houses...

Any experiences?
I am having a hard time selling my house for enough money to come up with a good down payment.
It was always been drilled into my head to hold onto real estate, if you can swing it.
I am no big baller and I have managed to live within my means until now.
I am thinking of renting this house and buying another to live in.
What can the ***boat collective give as advise or ideas?
If we keep it and rent it out, in the future I would like to sell this house and parlay it into a house at the river. Maybe to retire into, just an idea.
PM me if you would rather.
thanks
Brian

Can you rent your current home for a high enough dollar amount to cover the mortgage?
If your renter decides to leave can you cover 2 mortgages for as much as 3-4 months and make repairs to the home to cover the damage done to the home by the prior tenant in the event that they trash the place and do a lot more damage then their deposit will cover?
Can you keep enough money in the bank to cover emergency repairs like a leaky roof, busted fence, blown out water heater, A/C condenser, furnace, and etc? If something in the house breaks you have to get it repaired immediately, if not it is grounds for the occupant to walk out of the lease.
I've been thinking about picking up some condos here in the area and renting them out but I'm finding that I need to have a minimum 5K-10K sitting aside for emergency repairs or any other type of situation that may arise.

Yes barely.
I most certainly don't have enough money set aside for every foreseable event. That is weighing on my mind.
I would be able to do any repairs myself laborwise. The house is pretty basic.
Brian
Can you rent your current home for a high enough dollar amount to cover the mortgage?
If your renter decides to leave can you cover 2 mortgages for as much as 3-4 months and make repairs to the home to cover the damage done to the home by the prior tenant in the event that they trash the place and do a lot more damage then their deposit will cover?
Can you keep enough money in the bank to cover emergency repairs like a leaky roof, busted fence, blown out water heater, A/C condenser, furnace, and etc? If something in the house breaks you have to get it repaired immediately, if not it is grounds for the occupant to walk out of the lease.
I've been thinking about picking up some condos here in the area and renting them out but I'm finding that I need to have a minimum 5K-10K sitting aside for emergency repairs or any other type of situation that may arise.

if you can can break even and find good tenants... go for it. otherwise stay away.

if you can can break even and find good tenants... go for it. otherwise stay away.
That is the goal

Can you rent your current home for a high enough dollar amount to cover the mortgage?
If your renter decides to leave can you cover 2 mortgages for as much as 3-4 months and make repairs to the home to cover the damage done to the home by the prior tenant in the event that they trash the place and do a lot more damage then their deposit will cover?
Can you keep enough money in the bank to cover emergency repairs like a leaky roof, busted fence, blown out water heater, A/C condenser, furnace, and etc? If something in the house breaks you have to get it repaired immediately, if not it is grounds for the occupant to walk out of the lease.
I've been thinking about picking up some condos here in the area and renting them out but I'm finding that I need to have a minimum 5K-10K sitting aside for emergency repairs or any other type of situation that may arise.
What he said! And, if ya rent it screen, screen, screen your prospective tenants.....it will pay off in spades ;)

I went through the same thing when I moved from our last house. When I figured in all the costs to keep it (mortgage, insurance, taxes, hoa, repairs, etc.) it was just too much negative for me. Plus, I wanted the cash out to put into the new house to keep my mortgage down. Another thing I considered was the fact that when I did sell it, I would have to pay capital gains that would have cut into any profit.
Tough decision, just make sure you consider all costs associated with keeping it, as well as the possible headaches involved.

I'm having the same battle right now. I have about $300k in "equity" but in order to afford another house in OC I will have to pull out at least $140K for a down payment. I will then be negative cashflow on my current home.
People have many reasons for their decisions but I have found that more people wish they would have been patient and held on to that first home.
Another thing to consider is that foreclosures are up and the supply of rentals is increasing in some areas, which may put downward pressure on rent pricing.
That being said, I'm trying to keep my ego out of my next home purchase, buy something better but not over-the-top and keep my home.
Good luck!

I would have to pay capital gains that would have cut into any profit.
Thats a big one. Per memory, in CA, you have to consider a property your personal residence for 2 years out of the last 5 that you own it to get away from capital gains. If you don't, you will be paying big time!
It is a tough situation. If you can cover yourself, even if you are not making income off of it, you are making equity. As long as you are not negative every month, you are doing good. Your renters are making your morgage payment and in turn, making you money.
Every year, I plan on dumping between $2k-$5k in maintenance and improvements. Also make sure that you have enough set aside to cover taxes and insurance. We had a renter move out after 3 years and trash the house. Ended up dragging out the eviction process and we had to eat the rent for 2 months. After that another month for repairs, and another month to rent out. 4 months of non covered morgage. That was in addition to the damage they did to the house. In total it was between $10-$15K out of pocket expense. :(
I still look at it as I bought the house at the right time, they made my morgage for 3 years and I am still ahead. It is just sometimes shit happens with houses. It is not the short term, but the long term! :)
Another thing that you have to consider is that if you rent it out, the rental $ is considered income to you. You will be taxed on it, but can still write off the interest on the loan. I would seriously talk to your accountant on what they would recommend to do. They will look at your situation and give you input.

Another thing I considered in my decision was the additional money I would have had to borrow on the new home if I wasn't pulling the money out of my old home, and the cost of that money. For example if I went in to the new home with 200k less, I would have been paying interest money on that amount that further cut into any profit.

[QUOTE=BADBLOWN572;2547104]Thats a big one. Per memory, in CA, you have to consider a property your personal residence for 2 years out of the last 5 that you own it to get away from capital gains. If you don't, you will be paying big time!
It is a Federal law. California does not have capital gain tax. It is all ordinary income. The federal capital gain rates are applicable to assets held for more than a year. The 2 out of 5 thing is a Federal law that allows the first 500k of profit (married filing jointly) to be tax free. Also keep in mind, if you buy another and then sell your current one at a later time and claim this exemption, you will have to wait another 2 years beyond that sale to get the same exemption on the new one.

All good advice, further clouding your ability to make a rational decision :idea: Fock it, sell the house and buy another boat ;) :D

If I were to sell my primary residence and whatever profit I make on the sale was put directly into the building of new house and that would be my new primary residence. Would I still have to pay capital gains?

Back away and look at it like a pure investment. You buy a stock because you think it is undervalued and is going to run up.
Do you see housing in the same way (undervalued and about to take a big run up?)or do you think it has run its course for a while and will be a lack luster investment for some undetermined period of time? When you add up all the costs (don’t forget you will have to claim the income) that is a lot of cost to carry an investment that may not be so hot especially if you say you can barley cover the costs if something goes wrong.
We crossed this road every time we moved. We would have made money but that was when housing was reasonable and before the whacko run ups. Besides I don’t have an ounce of patients to deal with renters. We decided to make triple payment our 30-year and be done with a mortgage in 10 years and it feels good now.

[QUOTE=BADBLOWN572;2547104]Thats a big one. Per memory, in CA, you have to consider a property your personal residence for 2 years out of the last 5 that you own it to get away from capital gains. If you don't, you will be paying big time!
It is a Federal law. California does not have capital gain tax. It is all ordinary income. The federal capital gain rates are applicable to assets held for more than a year. The 2 out of 5 thing is a Federal law that allows the first 500k of profit (married filing jointly) to be tax free. Also keep in mind, if you buy another and then sell your current one at a later time and claim this exemption, you will have to wait another 2 years beyond that sale to get the same exemption on the new one.
Ca has a 3 1/3% withholding tax on all non owner occupied property. They are also currently trying to pass a 1.75% transfer tax on any home sales. Thank a Realtor. They are the only ones fighting CA on this as we speak.

Good advice on the repairs and cash flow issues for vacancies, etc. etc.
Also look at it as a long term investment for you. That includes the cash flow.
If you can afford it then its a no-lose situation. Screen your applicants carefully. That includes a credit check and reference check.
You must declare the rent as income but you can deduct the interest, taxes, maintenence, insurance and depreciation against that income. Hopefully you can break-even then you will owe no income tax on the rental. If you income is low enough you can even deduct the loss :D

Good advice on the repairs and cash flow issues for vacancies, etc. etc.
Also look at it as a long term investment for you. That includes the cash flow.
If you can afford it then its a no-lose situation. Screen your applicants carefully. That includes a credit check and reference check.
You must declare the rent as income but you can deduct the interest, taxes, maintenence, insurance and depreciation against that income. Hopefully you can break-even then you will owe no income tax on the rental. If you income is low enough you can even deduct the loss :D
Depreciation is the biggest benefit. Remember, you can only depreciate the improvement (the building) by 27.5 years.

If I were to sell my primary residence and whatever profit I make on the sale was put directly into the building of new house and that would be my new primary residence. Would I still have to pay capital gains?
Nope!

If there is ANY way to hang on to the old place and rent it out do so. You will never be sorry if you make it happen. Even if you have to go negative monthly you may re-coup it annually after taxes. Even in a bad rentor situatuation you win in the end. My rentors pay my mortgages for me while the values increase and I get GREAT tax advantages too. The worst meth labbers I (unknowingly) rented to have even made me money, (the value increased 100k while they were paying the rent). Sure they tore the place up and it cost me $2800.00 to re-paint and carpet and repair, who cares? I still made about 90k plus tax advantges for the year.
Boats and toys are great but they will NEVER appreciate and buy you real estate whereas real estate will (potentially) buy you ALL the good stuff.
Right now is the time to buy too, make lo-ball offers and sooner or later some one will be in a situation to take your offer.
Best of Luck.

Nope!
Wrong! He can only claim up to $250k tax free if he is single and $500k married.

if you can in any way swing it DO IT! but you must look at it as a long term thing. The first condo I bought will be paid off before my kids start college and guess whats going to foot the bill for living expenses? Also who said you had to report all of the rent? (you didnt hear that here.) But it needs to break even or come very close to it, hard to do if your looking to buy rental prop. now but if you have owned it for awhile should be possible even if you have to pull some $ out for the down on your new place. Also I have not done and do not suggest ARM's on prop. you plan on keeping for any amount of time. Just my .02

Hello there,
I want to sell my DSS property. But landlords do not sell this property. Please tell me what should I do?
Thanks in advance.

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Originally Posted by paul18

Hello there,
I want to my DSS property. But landlords do not and this property. Please tell me more about phentermine otc what should I do?
Thanks in advance.

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What area are you talking about? London?