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All Forum Posts by: Barbara Teel

Barbara Teel has started 1 posts and replied 2 times.

Post: Does this rental make sense?

Barbara TeelPosted
  • Los Angeles, CA
  • Posts 2
  • Votes 1

Thanks for the feedback everyone! I like the area but at the end of the day do want to be making and not losing money monthly.  I'll see what profit I can make and hopefully can reinvest somewhere on the east coast. I'm relocating to Boston now which as far as I know is not more of an affordable market than LA but will see what I can find! A multi-unit house hack is definitely the way I would like to go. 

Post: Does this rental make sense?

Barbara TeelPosted
  • Los Angeles, CA
  • Posts 2
  • Votes 1

Hi BP Members,

I'm new to real estate investing and am looking to see if I can convert my current home into a rental. I'm moving out of state (in Los Angeles currently) and instead of selling would prefer to rent it. I've been reviewing the numbers and wanted to see if there is anything I am missing?

If I look at PITI as it seems some investors just focus on that, I would have a slight cash flow of $62 a month. So not very high at all but something. However if I factor in property management cost and gardener fee, I am in the hole closer to $300 a month. For me to rent it I would also need to do some repairs which can be up to $10-12k. At this point, I wonder if it's worth it. As we're at the top of the market and it seems like we wouldn't even be breaking even. Curious on thoughts from those who have been in this business much longer.

Thank in advance!