General Landlording & Rental Properties

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Mike Lynch
  • Shallotte, NC
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To Rent or Not To Rent

Mike Lynch
  • Shallotte, NC
Posted May 14 2022, 07:26

Hi,

I was told by half of the people on investing websites to sell my property, here in Shallotte, NC, but it is pretty hard to find new stuff here as a $40,000 singlewide with land is now selling for $180,000. Our home / property is vacant but going up in value. I found out that I can get a cash out refinance on it of about $190,000. With this money I can finish the rehab and put a doublewide on my parcel right beside of it. I would have two rentals, side by side. My new cash out mortgage would be $1600.00 per month. I would get $1700.00 per month for the brick home and maybe $1500.00 per month for the doublewide. I would get around $1200.00 per month cash flow for the two properties, according to my calculations, give or take. Taxes and Insurance for the brick home are included in the new mortgage, but not for the double wide.

Many people tell me that I am nuts for trying to become a long term landlord. "It is nothing but a huge headache", They say.

Since it would be easy to sell the home, but hard to buy a flipper at below market value and flip it, I am still stuck as to what to do with it.

How much do you hate to be a landlord? ..... What other options would you do?

If I search for the most evil, meanest eviction attorney in the state and use their paperwork and rental agreements, would this help me at all?

One of the property management companies here has in their rental agreement that they must do a pest / maintenance inspection of the property every 90 days so they can check for water leaks, pests, drugs, cats, dogs, change HVAC filters, check for extra people living in the home, etc. ..... It seems like a pretty smart idea. 

The home in question is worth about $300,000. If we sell now we do not have to pay $26,000 capital gains tax. If we wait until the end of the year will will lose it.

Southeast NC, North Carolina

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