Anyone here a landlord?

[PantherBrew]

The key is being able to repair minor things in the home and not having to pay someone to do it.

Unless you have 5+ property's and a very affordable handyman.

The best handy man is probably a drunk, who doesn't want a real job and probably couldn't pass a drug test. But knows how to do a lot of jobs, even jobs that fuging suck.

[Hawk]

universal healthcare is a bitch..............

You have to pay PMI if you make less than a 20% down payment.

and no universal health care...suck it bleys

[Hairless Cat]

The key is being able to repair minor things in the home and not having to pay someone to do it.

Unless you have 5+ property's and a very affordable handyman.

The best handy man is probably a drunk, who doesn't want a real job and probably couldn't pass a drug test. But knows how to do a lot of jobs, even jobs that fuging suck.

thats me

[thefuzz]

pantherfan49 -

just wondering - If I could hypothetically make a 25% down payment on a $100,000 mortgage for a balance of $75,000, would that benefit me more than only making a 10% down payment if the bank would let me get away with that? Or does it simply depend on what the interest rates do?

Not trying to be rude or anything, but you won't be getting a home in a good part of Brunswick County for 100K.

[Hairless Cat]

Not trying to be rude or anything, but you won't be getting a home in a good part of Brunswick County for 100K.

Oak Island or Southport - not in the swankiest neighborhoods or a big house ( 2 or 3 small br and 1 bath) but good enough for working class stiffs starting out

[Zaximus]

The wife and I have a nice little townhome right now, in a great area. We're comfortable for now, but when kids come along we want to get a larger home obviously. We've already been making payments for around 5 years. I guess the plan is that when we get a new home, I'd like to keep the townhome and rent it out, and eventually when it's paid off, sell it for some retirement money. I think I could rent it for around 1-1.1k a month.

I guess you take a lot of risk though, like, in my situation if I can't find renters, I'm stuck making 2 mortgage payments (the townhome and the new home), and if you don't have some income to throw at it when that happens, you'll be in trouble. In terms of people tearing up the place, can't you (as a landlord) inspect the home at any time, whenever? I'd try to check it out monthly. I also heard you can hire a management company to do things for you, not sure how much it is, but it may be worth it to let them deal with it. I would also ALWAYS be paying on a yearly home warranty plan, so in case something like an AC/heating goes out, you could sometimes only have to pay the $55 service fee or w/e to get it fixed. Yearly, it's usually about $500 for a home warranty plan or you can pay monthly, it's worth it (for everyone that is). Then you have to pay to keep the home up to date, so when you do eventually sell it it is worth more.

But can't you get nice tax breaks with multiple homes?

I'm just trying to think of the future, a future without things like social security being around. I'd like to be able to retire with 401k (both wife and I), and maybe selling this home/property too (and obviously having my main home paid off). Anything else on top of that would be great.

[bleys]

definitely the downside to renting.. a friend of mine has a place in ATL and Raleigh, renting out the one in ATL.. his tenant just moved out before her lease is up and it's going to cost him too much money and travel time to take the legal route and recoup the last 3 months of rent..

stuck paying a $1500 mortgage for the next 3 or 4 months until he finds someone else to move in.. apparently he has to wait 3 months before a new tenant can move in due to this particular HOA or some bullshit..

[pantherfan49]

In terms of people tearing up the place, can't you (as a landlord) inspect the home at any time, whenever? I'd try to check it out monthly.

Yes, but you have to give notice to the tenants first. I highly recommend this though. Keep checking up on your tenants so they know someone is watching them.

I also heard you can hire a management company to do things for you, not sure how much it is, but it may be worth it to let them deal with it.

Typical fee is 7%. So in your case about $70 a month. The management companies also handle repairs and stuff like that, and usually get a decent deal from their contractors but they aren't going to watch your money like you do.

I would also ALWAYS be paying on a yearly home warranty plan, so in case something like an AC/heating goes out, you could sometimes only have to pay the $55 service fee or w/e to get it fixed.

Almost always cheaper to self-insure, but that's your call if you want the certainty.

But can't you get nice tax breaks with multiple homes?

Mortgage interest is deductible as an ordinary business expense as is taxes, fees, etc. Not sure about anything else.

I'm just trying to think of the future, a future without things like social security being around. I'd like to be able to retire with 401k (both wife and I), and maybe selling this home/property too (and obviously having my main home paid off). Anything else on top of that would be great.

Don't bank on that 401k too much. The tax rate is going up, so any gains might be hit with an uncomfortable tax rate. Plus, the US economy is really shaky and the long-term doesn't look great because of our debt problems. You are smart to diversify your long-term plans.

[KSpan]

paying them off really isn't good...you want that interest and expenses etc.

You're kidding right? Why would you send a bank $10,000 in interest to save $3000 in taxes (example for round numbers)? Pay the damn things off, pay the taxes, and pocket the other $7000.

[cookinbrak]

The key is being able to repair minor things in the home and not having to pay someone to do it.

Unless you have 5+ property's and a very affordable handyman.

The best handy man is probably a drunk, who doesn't want a real job and probably couldn't pass a drug test. But knows how to do a lot of jobs, even jobs that fuging suck.

You have to have bonded, insured people do work on rental properties. Unless you want to get sued often.

[Hairless Cat]

sued by who for what?

[Hawk]

You're kidding right? Why would you send a bank $10,000 in interest to save $3000 in taxes (example for round numbers)? Pay the damn things off, pay the taxes, and pocket the other $7000.

depends on the situation...at least with the tax rules here etc. If you have a job and this is to supplement that or to be your investment for your future...then for me it's better to have the mortgage...less income from the property = less impact on my income tax/capital gains etc.

[Davidson Deac II]

Mortgage interest is deductible as an ordinary business expense as is taxes, fees, etc. Not sure about anything else.

There are a lot of things that are deductible. Any equipment such as washers and dryers in the place can be depreciated. Any miles that you drive regarding the property, or tools you purchase for maintenance, and a number of other things, most of which I forget.

[cookinbrak]

sued by who for what?

Little Billy stepped on a nail that you drove 2 months ago. You drove it improperly and with the wrong equipment.

You adjusted the water heater (last August) and now it's leaking. All of those valuable shoes in the closet are now ruined.

You changed a light fixture, and an electrical fire (in another room) burns the house down. As long as nobody dies, you won't be charged with manslaughter.

In other words, if you're charging someone for a dwelling, you better make sure everything is done properly and to code. There's a very fine line concerning what you can do to your own house, what can be done by a "handyman", and what has to be done by a professional with permits.

Not to mention the amount of insurance you need to cover everything. My wife's parents have a 5 million dollar umbrella policy for 4 dwellings.

If you actually want to make money, buy homes in the low income areas that are Section 8 housing. At least you get your rent every month.