 1st time landlord advice (by Addy [NC]) Jan 17, 2021 3:07 PM
 1st time landlord advice (by Jason [VA]) Jan 17, 2021 3:15 PM
1st time landlord advice (by Richard [MI]) Jan 17, 2021 3:23 PM
1st time landlord advice (by RB [MI]) Jan 17, 2021 3:28 PM
1st time landlord advice (by plenty [MO]) Jan 17, 2021 4:07 PM
1st time landlord advice (by Still Learning [NH]) Jan 17, 2021 4:09 PM
1st time landlord advice (by Robert J [CA]) Jan 17, 2021 5:02 PM
1st time landlord advice (by Robert J [CA]) Jan 17, 2021 5:02 PM
1st time landlord advice (by Jim in O C [CA]) Jan 17, 2021 5:05 PM
1st time landlord advice (by Addy [NC]) Jan 17, 2021 5:17 PM
1st time landlord advice (by WMH [NC]) Jan 17, 2021 5:42 PM
1st time landlord advice (by Tony [NJ]) Jan 17, 2021 5:57 PM
1st time landlord advice (by DJ [VA]) Jan 17, 2021 6:37 PM
1st time landlord advice (by Jason [VA]) Jan 17, 2021 6:40 PM
1st time landlord advice (by Dave [MO]) Jan 17, 2021 8:01 PM
1st time landlord advice (by LindaJ [NY]) Jan 17, 2021 9:37 PM
1st time landlord advice (by Deanna [TX]) Jan 17, 2021 9:39 PM
1st time landlord advice (by Nellie [ME]) Jan 17, 2021 11:27 PM
1st time landlord advice (by Bonanza [NC]) Jan 18, 2021 4:29 PM
1st time landlord advice (by Ray-N-Pa [PA]) Jan 18, 2021 5:25 PM
1st time landlord advice (by Addy [NC]) Posted on: Jan 17, 2021 3:07 PM
Message:
Hi everyone I am debating about renting out my first home. My big issue is we live in a humid climate and this is a 60 year old home with poor windows and worse ventilation and poor wiring. We could repaint it and do a short term treatment to cover past mold damage that has since been treated before selling but I have no doubt it will come back when we go to rent it. Those risks being said it is newly renovated with all new appliances, HVAC, water heater, and a new roof. We are in an area that requires us to use a rental management property so we are looking at profiting about 100-200 a month depending on what we can list it for reasonably. Now I am in an area that has a steady stream of new renters and a shortage of rental properties on the market so it should not go empty for long. The market is great for selling in my area right now so I doubt this house will ever list for more. If you were in my shoes would you sell this house and wait to rent out a newer home with less risk or would you rent this one out? Sorry for the long post appreciate the help! --71.77.xxx.xxx |
1st time landlord advice (by Jason [VA]) Posted on: Jan 17, 2021 3:15 PM
Message:
With such a small margin, you’ll drown in carrying expenses. If you aren’t able to manage it yourself, now would be a good time to sell.
If the mold comes back, your 100-200 profit will quickly turn into a loss. --172.58.xxx.xxx |
1st time landlord advice (by Richard [MI]) Posted on: Jan 17, 2021 3:23 PM
Message:
With all that's going on now --- just sell and pocket any profit.
100-200 a month is too small to take the risk in the current situation. --75.7.xx.xx |
1st time landlord advice (by RB [MI]) Posted on: Jan 17, 2021 3:28 PM
Message:
1st time landlord advice (by plenty [MO]) Posted on: Jan 17, 2021 4:07 PM
Message:
1st time landlord advice (by Still Learning [NH]) Posted on: Jan 17, 2021 4:09 PM
Message:
Sell, no where near enough monthly profit and a lot of described potential expensive issues. --73.17.xx.xxx |
1st time landlord advice (by Robert J [CA]) Posted on: Jan 17, 2021 5:02 PM
Message:
I purchased my first rental back in 1978 and lost $30 a month, but got $100 in tax write-offs, so I was a head of the game by $70 positive cash flow -- on paper. Over the years there were up and down cycles. Easy than hard to rent. Repairs, upgrades and damages. Evictions.
I had to be prepared to work an extra day a week to make money to support that house if the tenant didn't pay the rent or the roof needed replacing, pool heater went out, etc.
Now 42 years later that house that cost me $72K with a $15K down payment is paid off and worth $700K with gives me around $2,200 a month positive cash flow.
So for each house I flipped when I got started, I would make around $20,000 profit. But those homes I kept and rented out made me millions over time.
But there were some years I had to work 10 hours a day and 7 days a week to keep things going... --47.155.xx.xxx |
1st time landlord advice (by Robert J [CA]) Posted on: Jan 17, 2021 5:02 PM
Message:
I purchased my first rental back in 1978 and lost $30 a month, but got $100 in tax write-offs, so I was a head of the game by $70 positive cash flow -- on paper. Over the years there were up and down cycles. Easy than hard to rent. Repairs, upgrades and damages. Evictions.
I had to be prepared to work an extra day a week to make money to support that house if the tenant didn't pay the rent or the roof needed replacing, pool heater went out, etc.
Now 42 years later that house that cost me $72K with a $15K down payment is paid off and worth $700K with gives me around $2,200 a month positive cash flow.
So for each house I flipped when I got started, I would make around $20,000 profit. But those homes I kept and rented out made me millions over time.
But there were some years I had to work 10 hours a day and 7 days a week to keep things going... --47.155.xx.xxx |
1st time landlord advice (by Jim in O C [CA]) Posted on: Jan 17, 2021 5:05 PM
Message:
Sell. If you want to become a landlord buy a more suitable property to rent.
Remember lawyers like to say Mold rhymes with gold going into their pocket. --99.23.xxx.x |
1st time landlord advice (by Addy [NC]) Posted on: Jan 17, 2021 5:17 PM
Message:
For all the people who suggested to sell what profit margin would make this a viable investment? --71.77.xxx.xxx |
1st time landlord advice (by WMH [NC]) Posted on: Jan 17, 2021 5:42 PM
Message:
Sell. If I'm not making MINIMUM guaranteed $500 a month after all expenses - all - it's not worth the work and worry. --50.82.xxx.xxx |
1st time landlord advice (by Tony [NJ]) Posted on: Jan 17, 2021 5:57 PM
Message:
Sell - for all the reasons already mentioned. Plus - it will likely and steadily go down in value for at least the next 5 - 6 years. --73.215.xxx.xx |
1st time landlord advice (by DJ [VA]) Posted on: Jan 17, 2021 6:37 PM
Message:
SELL, SELL, SELL! --68.229.xxx.xxx |
1st time landlord advice (by Jason [VA]) Posted on: Jan 17, 2021 6:40 PM
Message:
Listen to WMH. If you can’t make a MINIMUM of $500 per month, get out. --172.58.xxx.xxx |
1st time landlord advice (by Dave [MO]) Posted on: Jan 17, 2021 8:01 PM
Message:
Sell now why it’s a sellers market. I think you might be surprised at how much you will be able to get out of it.
It takes more than a 100- 200 a month to gain any benefits for your time. --173.216.xxx.xx |
1st time landlord advice (by LindaJ [NY]) Posted on: Jan 17, 2021 9:37 PM
Message:
60 year old home is nothing... I have 1850s houses. BUT your "profit" is not enough. If this was a house you lived in you will also have an emotional attachment to it. As a rental it will be your house and the tenants home. They will not treat it as you would. Unless you can get rid of that emotion, it will eat away at you.
If it was your home, and you have lived there for the number of years needed, any profit you get will not be taxed. As a rental you will start depreciation and that will be recouped at a higher tax rate when you sell. And that is at the current tax law. Who knows how the taxes will change in the next few years.. I suspect as a "housing provider" it may not be favorable.
I would sell... --108.4.xxx.xxx |
1st time landlord advice (by Deanna [TX]) Posted on: Jan 17, 2021 9:39 PM
Message:
"We are in an area that requires us to use a rental management property (company?)" = enough reason to sell right there.
If you want to be in the rental biz, and you're in an area that's highly regulated, it needs to be insanely profitable to make up for the headache, because the headaches will only grow as more and more regulations start interfering with your capacity to run your biz and live your life. --137.118.xx.xxx |
1st time landlord advice (by Nellie [ME]) Posted on: Jan 17, 2021 11:27 PM
Message:
Sell.
As a new landlord could you carry the building indefinitely if the new decided to take advantage of the current eviction moratorium that has no end in sight? --70.16.xxx.xxx |
1st time landlord advice (by Bonanza [NC]) Posted on: Jan 18, 2021 4:29 PM
Message:
You already know it is a dog. You said it has bad windows and worse ventilation and poor wiring. It is a money pit. It will need a roof, it will need a new waste line to the street or a new septic or new plumbing, it will need a new HVAC and or new electric. Sell it and get something better. --71.217.xxx.xx |
1st time landlord advice (by Ray-N-Pa [PA]) Posted on: Jan 18, 2021 5:25 PM
Message:
In my low cost area......I would consider holding on it with $200 positive cash flow. Then again, I get these places for $40,000 and a $200 profit on a $3,000 down payment and $10,000 investment is not bad - as i would be riding the forced appreciation wave.
But even with the full $200 in positive flow and a cheap entry level price point, I have personally sold seven places last year just because I feel where we are at in the economic cycle. For me, it is easier to sell them for 70, and 1031 into something less hands on.
Maybe though - you will get into LLing because you like dealing with tenants and toilets. For me it is about steady ROIC in a steady market place. My last place, had an offer in about one week. The demand for a move in ready house is simply too great that if you have an opportunity to make a buck - the money is REAL easy. --24.101.xxx.xx |
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