Why rent? To get richer ...the remix!!!!
- Thread starter delock
- Start date
Please don't use HUD, they have hundreds of rules and conditions, & the people they provide won't be paying the money from their pockets, so they won't
give a damn about the property. In short they gonna tear up yo sh@t!!
All you gotta do is find out what a one or 2 bedroom apartment goes for in the area. Find a married couple, offer them a whole house for close to that
All that tax info, insurance, etc etc. you will find out prior to buying the property
from the public records, mortgage company, etc etc.
delock
BARBERSHOP COO
Hmmm...ok,
But,now you and frat have my thinking about renting my house while I move downtown.
So I know all the tax other stuff....
So how would i find someone to rent the place?
Da_Sperm
New Member
Tony is exactly right. Rule of thumb, don't let the government in your business. With government assistance, you are guaranteed the government share of the rent, but you are at a high risk of collecting the tenant share of the rent.
In my opinion, I say find people who want to OWN your house and not just RENT IT. That is, LEASE TO OWN. You can collect more money up front (DEPOSIT). For every month they pay on time, you can set aside a portion for DOWN PAYMENT when they buy the house ($50 or $100). Then you put a time limit on the purchase of the house (12, 24, or 36 months). Last of all, you set the sale price at what you think the market will be 12, 24, 36 months down the line, that way you get FULL ASKING PRICE for your property. In 12, 24, 36 months, if they can't buy, you can simply redo the contract or kick them out.
These are great because it give people who have challenged credit the opportunity to buy into a house while they are leasing it and getting their credit straight.
Stay away from HUD. If a ceiling fan doesn't work, they won't pay.
P&I is determine by the Interest Rate, Loan Amount and the Term. Any financial calculator on the net will be a good source to determine P&I.
Taxes can be determined by applying the tax rate to the county appraisal. Many counties have website that publish both the tax rate and property appraise value.
Insurance can be determined by calling a couple agents. Insurance on a rental property is EXTREMELY LOW compared to a property that you occupy. For example, once I move out of my old house and made it a rental property, the homeowners insurance dropped from $1400 per year to $600 per year. I no longer had to cover insurance on the TVs, furniture, clothes, appliance, etc (that is what Renters Insurance is for and its the tenants responsibility).
In my opinion, I say find people who want to OWN your house and not just RENT IT. That is, LEASE TO OWN. You can collect more money up front (DEPOSIT). For every month they pay on time, you can set aside a portion for DOWN PAYMENT when they buy the house ($50 or $100). Then you put a time limit on the purchase of the house (12, 24, or 36 months). Last of all, you set the sale price at what you think the market will be 12, 24, 36 months down the line, that way you get FULL ASKING PRICE for your property. In 12, 24, 36 months, if they can't buy, you can simply redo the contract or kick them out.
These are great because it give people who have challenged credit the opportunity to buy into a house while they are leasing it and getting their credit straight.
Stay away from HUD. If a ceiling fan doesn't work, they won't pay.
P&I is determine by the Interest Rate, Loan Amount and the Term. Any financial calculator on the net will be a good source to determine P&I.
Taxes can be determined by applying the tax rate to the county appraisal. Many counties have website that publish both the tax rate and property appraise value.
Insurance can be determined by calling a couple agents. Insurance on a rental property is EXTREMELY LOW compared to a property that you occupy. For example, once I move out of my old house and made it a rental property, the homeowners insurance dropped from $1400 per year to $600 per year. I no longer had to cover insurance on the TVs, furniture, clothes, appliance, etc (that is what Renters Insurance is for and its the tenants responsibility).
:tup:
POW!!! BINGO!!!!!
All of my renters have been told that at an unnamed future date I will give them an option to BUY. I don't want to own the property forever.
This gives tenents instant pride, in possible ownership & most have invested and made improvements that even I would not have done. You get a loyal renter who feels truly invested in the property, a win win for everybody!!
Both really,
cover the expense 1st and I got to make some profit, but now
when you have paid the mortgage off. The profit sky rockets. Giving me the chance not to raise someones rent every year, and treat it more like a
business for profit/ministry
Oh and not just the profit alone the property also doubles as a tax shelter for your other income
ThrowForSix
See the Excitement
The house i brought last year we had people driving by and stopping to inquire about the house while we were fixing it up. Then i put the sign up and put a ad in the GREENSHEET and my phone blow up. It was rented in two weeks and I had 17 serious folks with money in hand.
I also listed it in section 8, but I found they take too long to pay the first payment. So, I took the person who credit checked out, had a steady job and who income could cover the rent.
I used the market rate in the area for that house. The note is under $600 dollars for P&I, taxes and insurance and I rented for $900.00 a month. It was a foreclosure also three bedroom 1 1/2 bath. I brought it for $58,000. I think I have a photo.
Da_Sperm
New Member
No, not a stupid question at all. There are 3 ways to profit when you are a property owner.
1) Rental reciepts
2) Tax Deductions
3) Appreciation
So landlords buy property and rent it at a small loss or no monthly profit at all (meaning, it isn't enough to cover all the expenses) just so that the rent payments cover the mortgage long enough for the property to appreciate.
EX. Lets say you are a builder and you just built this brand new house and you want to sell it. It cost you $150K to build. You take out an interest-only loan to complete the project. However, you don't have a buyer and you can sell the house for $300K. Well, you may rent out this house for $1000/month to cover the mortgage and still have the house up for sale. 12 months later, you find a buyer who will buy the home for $300K.
You just made $150K and for 12 months, you were able to pay the mortgage because you had a renter in the unit until you found a buyer. Even if you had to rent it for a $200/month loss ($800/month), it is still worth it. YOU SEE?
delock
BARBERSHOP COO
The house i brought last year we had people driving by and stopping to inquire about the house while we were fixing it up. Then i put the sign up and put a ad in the GREENSHEET and my phone blow up. It was rented in two weeks and I had 17 serious folks with money in hand.
I also listed it in section 8, but I found they take too long to pay the first payment. So, I took the person who credit checked out, had a steady job and who income could cover the rent.
I used the market rate in the area for that house. The note is under $600 dollars for P&I, taxes and insurance and I rented for $900.00 a month. It was a foreclosure also three bedroom 1 1/2 bath. I brought it for $58,000. I think I have a photo.
You rent house is around the corner from my Aunt!
delock
BARBERSHOP COO
Feeling you Corey,
Let me check some stuff to see what the avg rent is for my area. I may go that route with the lease to own.
I'm not sure who brought it up you are Tony, but you got a bro to thinking. Why sell, when I can lease to own. With all of the sub-prime loan companies closing down...its' going to be hard for an honest couple with no credit to get a house....
Damn, I owe y'all fool a drink
buckwheat
Well-Known Member
The house i brought last year we had people driving by and stopping to inquire about the house while we were fixing it up. Then i put the sign up and put a ad in the GREENSHEET and my phone blow up. It was rented in two weeks and I had 17 serious folks with money in hand.
I also listed it in section 8, but I found they take too long to pay the first payment. So, I took the person who credit checked out, had a steady job and who income could cover the rent.
I used the market rate in the area for that house. The note is under $600 dollars for P&I, taxes and insurance and I rented for $900.00 a month. It was a foreclosure also three bedroom 1 1/2 bath. I brought it for $58,000. I think I have a photo.
Nice House!
buckwheat
Well-Known Member
The house i brought last year we had people driving by and stopping to inquire about the house while we were fixing it up. Then i put the sign up and put a ad in the GREENSHEET and my phone blow up. It was rented in two weeks and I had 17 serious folks with money in hand.
I also listed it in section 8, but I found they take too long to pay the first payment. So, I took the person who credit checked out, had a steady job and who income could cover the rent.
I used the market rate in the area for that house. The note is under $600 dollars for P&I, taxes and insurance and I rented for $900.00 a month. It was a foreclosure also three bedroom 1 1/2 bath. I brought it for $58,000. I think I have a photo.
Nice House! Unfortunately, I have a renter living in my rental that is two months behind. He lost his job and is now trying to get assistance to pay his rent. Renting has its' good and bad part.
delock
BARBERSHOP COO
damn...so how long before the assistance kick in....and will it bring the renter up to current with you?
ALPHA3
Active Member
I don't know how I missed this topic. I've used the yard sign before, but lately people have contacted me through other people. I'll take Section8 and well as regular rent paying folks. All I ask my renters is to agree to a monthly visit to inspect the property and address any concerns they may have.
This one is about to be on the market in Gentilly an area of New Orleans.
This one is about to be on the market in Gentilly an area of New Orleans.
buckwheat
Well-Known Member
In a few more weeks.