Anyone own rental property?
- Thread starter dawgball
- Start date
- Feb 12, 2000
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Here's my situation. I own a condo in Atlanta that I presently live in. We are planning on moving to Nashville (3 1/2 hours) in 12-18 months. I can refinance now which would put my mortgage, taxes, insurance, and association fees less than what I could rent the place out for. The condo is right in the middle of Buckhead (happening area of town for younger crowd), so it should be rather easy to rent out. We have twice as much equity in the condo as we would need to use a home equity line for a down payment on the size of house we would like to buy in Nashville.
I am 28, my wife is 27. Does this sound like a scenario that would be favorable for me to hold on to the property.
Note: The business that I am a partner in will still be based in Atlanta. I will be making trips to ATL every other month or so. I will also have people here that would be willing to semi-manage the condo in case of emergency (for a fee of course). What should those fees be? Monthly or per incident?
Any other advice would be appreciated.
The place was just built last year, so all of the appliances, hard wood floors, drywall, etc. is practically brand new. We are the only people to have lived here.
Thanks!
I am 28, my wife is 27. Does this sound like a scenario that would be favorable for me to hold on to the property.
Note: The business that I am a partner in will still be based in Atlanta. I will be making trips to ATL every other month or so. I will also have people here that would be willing to semi-manage the condo in case of emergency (for a fee of course). What should those fees be? Monthly or per incident?
Any other advice would be appreciated.
The place was just built last year, so all of the appliances, hard wood floors, drywall, etc. is practically brand new. We are the only people to have lived here.
Thanks!
are you sure it's worth refinancing? have you checked on rates for property used for rental within 12 months of new mortgage, or are you basing it on what the lowest interest rate is you can get right now?
i have a TON of questions for you, leaving work now, and won't be home until 9:30 tonight from ballgames.
i have a TON of questions for you, leaving work now, and won't be home until 9:30 tonight from ballgames.
dawgball,
...you'll have to look me up when you get to nashville, buddy. (unless it's the weekend of the Tennessee v Georgia game)
...you'll have to look me up when you get to nashville, buddy. (unless it's the weekend of the Tennessee v Georgia game)
dawgball,
i have refinanced on my homes, so i think this is the right time to refinance. try to keep your closing costs at a minimum. for example, i have found that washington mutual has very low closing costs, so i have used them to refinance on some homes.
i am not a big fan of owning a rental property in a different state from where you live. however, since you say that the drive is about 3-4 hours & that you will be in atlanta every other month, i think that you should try to keep the property. i wouldn't hire anybody to manage it for you because it cuts into your profit margin, & because it is a brand new condo. i have found that having a trust worthy reliable handyman & building a relationship with him is probably the most important thing you would need. this way if a tenant calls you up about something that needs repair you can just call this handyman to take care of the problem & have him bill you for the work. i would also recommend that you get a home warranty contract to cover high priced items.
i am not crazy about renting property to younger people since i have had problems with them. but if you do try renting to a married couple rather than people who want to share the rent. i have learned that the tenants who have a female living in the residence are more reliable & cleaner than renting to single males.
do a back ground check(employment, previous housing, criminal record) on whomever you rent to.there are companies who do background checks.
there are alot of other things i would recommend but am getting tired from typing(lol). if you want i would be happy to help you further, so if you want ask jack for my e-mail address.
if you are seriously thinking about this i would recommend that you don't wait to the last minute because there is some research you should do.
i have refinanced on my homes, so i think this is the right time to refinance. try to keep your closing costs at a minimum. for example, i have found that washington mutual has very low closing costs, so i have used them to refinance on some homes.
i am not a big fan of owning a rental property in a different state from where you live. however, since you say that the drive is about 3-4 hours & that you will be in atlanta every other month, i think that you should try to keep the property. i wouldn't hire anybody to manage it for you because it cuts into your profit margin, & because it is a brand new condo. i have found that having a trust worthy reliable handyman & building a relationship with him is probably the most important thing you would need. this way if a tenant calls you up about something that needs repair you can just call this handyman to take care of the problem & have him bill you for the work. i would also recommend that you get a home warranty contract to cover high priced items.
i am not crazy about renting property to younger people since i have had problems with them. but if you do try renting to a married couple rather than people who want to share the rent. i have learned that the tenants who have a female living in the residence are more reliable & cleaner than renting to single males.
do a back ground check(employment, previous housing, criminal record) on whomever you rent to.there are companies who do background checks.
there are alot of other things i would recommend but am getting tired from typing(lol). if you want i would be happy to help you further, so if you want ask jack for my e-mail address.
if you are seriously thinking about this i would recommend that you don't wait to the last minute because there is some research you should do.
i just saw bahama mama's last post. i just refinanced on a rental property & got 5% on the loan.
find out the closing costs with the credit union. i have a 5 yr. arm mortgage on all of my properties.
find out the closing costs with the credit union. i have a 5 yr. arm mortgage on all of my properties.
- Feb 12, 2000
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taoist--I already have my reservations in Knoxville that weekend. My in-laws got them for us, so I don't know where we are staying right now. They go every year, so I have faith it will be in the right spot. I've never been to a game there, so I am really looking forward to it.
I am actually going to be at a wedding in Knoxville the first weekend of August. If we have spare time, we should try and get together for a few.
I am actually going to be at a wedding in Knoxville the first weekend of August. If we have spare time, we should try and get together for a few.
I don't recommend having rental property in a place where u don't live. There's just too much stuff that can go on, and you're not close enough to handle it. The only way to do this is if u HIRE somebody to run it for you. Someone who can fix or take care of getting everything fixed, collect the rent, screen new tenants, take care of the upkeep, etc. This of course cuts your profit margin.
I would sell it if u have equity, then if u want to rent, but a place to rent out in Nashvegas.
I would sell it if u have equity, then if u want to rent, but a place to rent out in Nashvegas.
Brother Dawg Congrats on marriage.When you get to Nashville hook up with Taoist and Clint and I'll will meet you half way for round of golf!
On rental property--- Place in Fla was HUGE pain in ass,but much different than long term renters. --so no opinion on yours,but appears you have plenty of resources here that do. Good Luck.
On rental property--- Place in Fla was HUGE pain in ass,but much different than long term renters. --so no opinion on yours,but appears you have plenty of resources here that do. Good Luck.
With what you have to rent out being in such good condition. This should leave you free of many problems for at least 4/5 years. If you can be ahead on the refinance in less then a year. That sounds good. A perfect tax shelter. For problems that come up that need at once handling. You need a service that will handle on a as they happen bases. With you being able to go back 3/4 times ayear to check on things that should work. Good Luck. I keep the place, build equity and get the tax break.
dawg,
first, i completely forgot. congrats on the marriage!!!
secondly...man there's some great advice in here. I'd try to keep the property, but I have to agree with AR regarding finding some handyman to help out rather than paying someone to manage, esp since it's a new condo.
...here's a gem of wisdom from the old wise one:
...as for knoxville or nashville (or most anywhere in between), I'd buy you, DTB or most anyone in here a beer and shake your hand. i think that you'll love nashville.
...drop me an e-mail if you've still got it, dawg.
first, i completely forgot. congrats on the marriage!!!
secondly...man there's some great advice in here. I'd try to keep the property, but I have to agree with AR regarding finding some handyman to help out rather than paying someone to manage, esp since it's a new condo.
...here's a gem of wisdom from the old wise one:
djv said:
...as for knoxville or nashville (or most anywhere in between), I'd buy you, DTB or most anyone in here a beer and shake your hand. i think that you'll love nashville.
...drop me an e-mail if you've still got it, dawg.
okay dawg.....i'm home from the soggy ball games now
first off.....others have said what i would say at the end.... rental property if you are not RIGHT there to monitor it is not worth the headache, but other points i would want to ask you about is whether or not you plan on *buying* or *renting* in your new location, carrying 2 mortgages isn't an easy thing to get approved for at your ages
do you have either AIM or MSN? post which one, and i will add your nick to the privacy stuff
first off.....others have said what i would say at the end.... rental property if you are not RIGHT there to monitor it is not worth the headache, but other points i would want to ask you about is whether or not you plan on *buying* or *renting* in your new location, carrying 2 mortgages isn't an easy thing to get approved for at your ages
do you have either AIM or MSN? post which one, and i will add your nick to the privacy stuff
- Feb 12, 2000
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Thanks, everyone for the advice.
Mama--I don't believe in instant messaging.:nono: For some reason I don't like it, but I would be happy to trade emails!
From the sounds of it, I am right in thinking that it is going to be a tough decision!
DTB--I can't wait to hook up on the links with you boys. The way I see it, my 19 handicap is going to get me about 5 strokes a side in this group!
Taoist--I tried to send you something the other day and it got rejected, so I trashed your address. Send me something, so I can have it for my records.
Thanks again for the advice from everyone!
Mama--I don't believe in instant messaging.:nono: For some reason I don't like it, but I would be happy to trade emails!
From the sounds of it, I am right in thinking that it is going to be a tough decision!
DTB--I can't wait to hook up on the links with you boys. The way I see it, my 19 handicap is going to get me about 5 strokes a side in this group!
Taoist--I tried to send you something the other day and it got rejected, so I trashed your address. Send me something, so I can have it for my records.
Thanks again for the advice from everyone!
dawgball said:DTB--I can't wait to hook up on the links with you boys. The way I see it, my 19 handicap is going to get me about 5 strokes a side in this group!
...bullshit!!! i don't even play enough to have a handicap!!! ...school takes up too much time, so i say you fellas lay me 20+
...dawg, you have mail.
