Turning where I am renting into my first investment?

Turning where I am renting into my first investment?

Real Estate Investor · Oceanside, CA · Member since 2008 · 38 posts · 0 votes

This is the house I am currently renting a room in:
http://www.realtor.com/search/listingdetail.aspx?zp=22309&mxp=26&typ=7&sid=d33f3e358790413f96acd5d0b7561c9d&pg=21&lid=1094555023&lsn=203&srcnt=203#Detail

The landlord who was renting from the owner pretty much dupped us roommates by keeping the february rent she collected from us so now he is evicting her. So I've made a deal with him to take over the responsiblities of being the landlord for the house until the end of June.

Obviously, he is looking to sell this home, and I've been here for about a year and we've always had roommates, some have come and gone but the rooms rent out fairly quickly in this area.

My question is, how would I go about, perhaps, making this my first rental property? What would my offer have to be to make it worth while. The house could use some small cosmetic touch up, like paint in the upstairs rooms, but the kitchen is nice, granite countertops, nice appliances, the washer and dryer isn't new but that didn't seem to be a problem when others have come to rent the rooms.

I wouldn't mind making this a rental for me, while I focus on getting a condo for my family. This house actually has 4 bedrooms 2 baths in it.

Any advice would help me out a lot. I just sent the owner, who is a great guy who seems to be very motivated to sell this house an email, telling him I may be interested in it myself. I would probably use my VA loan I have available, as FYI.

Thanks guys. :superman:

0Reply
14 views

2 Replies

Jump to latestLatest
  • Banker · sydney, Nova Scotia · Member since 2008 · 100 posts · 8 votes
    18y

    its hard to say without knowing what you would receive for rent...but I can't see how you would take in enough in rent to cover all the bills. Your bills will account for 50% of the rent (average). Some of the bills you need to pay out of the first 50% include: taxes, insurance, maintenance, vacancy, damage caused by angry tenants, legal, office supplies, water, utilities, etc. So that leaves the other 50% to take care of the mortgage payment.

    ie. if you have a mortgage payment of $1600. You would need to take in at least $3200 in rent to cover the bills. Any extra would be the profit.

  • Real Estate Investor · Oceanside, CA · Member since 2008 · 38 posts · 0 votes
    18y

    Good point, hmmm...oh well?

Join the conversationCreate a free account to reply, vote on answers and follow this thread.