My wife and I are moving into a new personal residence in January. We are planning to rent out our current place and the numbers seem to work to us. Just seeing what people with more experience think.
Our mortgage, tax, insurance and condo fees total $1820 and units like ours in the same development are renting for $2100-2200. Since we will be living about a mile away we plan to manage the property ourselves. So should be cash flowing $280-380 a month. We can cover both mortgages easily with our incomes and prefer not to sell now bc real estate fees would only net us $10k plus our original down payment. Please let me know what you think.
Great idea to rent it out you will gain experience, you can afford capital expenses and you live close buy ,plus there wll be tax advantages
Hi @Michael Osborne . It seems that the numbers work. I'm just curious if you factored in any maintenance. Some say that you should factor in your own PM fee as well which will cut down on your cash flow, but the money will be coming to you anyway, however, if you later decide to get a PM, you'll have to pay the fee. Therefore, I suggest factoring in the PM fee when you do your calculations.
You could also structure it to where you are doing a rent to own deal and possibly get a hefty initial down payment, charge interest on the mortgage to where it pays your motgage and you get interest on top of the interest you will have to pay the bank anyway.
I hope this makes sense. Great idea.
Best of wealth building.
I like @Stanley E. 's idea of rent to own, since Michael is not opposed to selling it.
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