All Forum Posts by: Bill Ward
Bill Ward has started 20 posts and replied 239 times.
Post: Hus/Wife on Lease, Physical Abuse - Can I change the lock on one of the two?

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@Jon Puente So my current primary house would make a decent rental by numbers with a PM, (PITI $1100, Rent $2000) and I'd only be moving to get out of a flood zone and downsize. If I used the sale proceeds and did buy a house (not likely but keeping options open), the new house value would be in a nicer area and much higher than my current rental property is. What I had been leaning toward was just investing the majority of the proceeds into stocks or a mutual fund, etc. Estimating $60k-80k left over after all fees and taxes. I felt like I could get an equal return through investing without the potential downsides of rental expenses. I'm trying to prepare myself to get into retirement in my early 50s. I'm 37 now.
2- by not being a landlord anymore I mean if I continue renting I will use a PM from now on. Keeping the current rental with a PM will be no cash flow (off set by the rent increase) and only a loan paydown of $500 a month and also I do not expect that house value to go up any more any time soon, as it went up significantly already.
3- I don't have the desire to seek out new rental properties or investment properties, I just happen to be living in one that would work now because I got it in a short sale at 2.75% (that I bought with the ex and her kids but I'm single now and no longer need the extra space).
I'm constantly flip flopping so maybe it doesn't matter which way I go, I'm leaning toward selling my one rental that used to be my primary. Tenant moves out this week and I'll remodel and replace flooring inside, expecting $10k to prep it for sale.
Purchase price was $123k in 2010.
Estimated sale price: $190k
Mortgage: $70k left for 9 years.
PITI is $970,
Rent expected to be $1500 for next tenant.
I don't want to be a landlord anymore so it's either use a PM or sell. No immediate plans for the money after selling. If I find a house to move to I would buy that and rent out my current home. The house has been basically breaking even, tax advantages are minimal. I feel like keeping it is just waiting for something expensive to happen in the future. I'd rather be more passive. I made great appreciation the 4 years I've rented it, and loan paydown went from $98k to $70k since 2018.
I want to keep it only because houses are so expensive I feel like I won't ever have another, and I have 2 now. But I want to sell because I don't want a headache tenant in the future or major expenses.
Push me
Quote from @Stephen Groves:
@Joe Villeneuve that is helpful. Cash reserves are not an issue for me. I guess I am viewing it as a long term
Investment. Say over 20 years it ends up taking even 40k out of my pocket. In that scenario, I invested 40k over 20 years and ended up with a building that will quickly resell at 200k or more or can be held to generate significant income once it is held free and clear. I don’t have other non real
Estate investments that can go from 40k to 200k in under 20 years.
Just FYI 40k at 20 years is just under 9% interest yearly, if you could beat that more passively.
I'm pretty sure the cash invested includes your down payment. So if you spent $145k of your own money, and you cash flow $1k a month, then it take's 145 months to get your money back. Excluding loan paydown and appreciation.
Post: Property is Carpeted - Is not Allowing Pets Still Possible?

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- Votes 300
When I first started I had new carpet in the house. So as a 'reward' for tenants being good, I paid to have professionals go steam clean the carpet twice a year. One time after a move out it had pretty bad dog smell. Steam cleaning myself (many times) I was able it to get it back to usable condition and it lasted for one more tenant. It's been 5 years of tenants and it's time to replace. Going to LVP next.
Just FYI, $2k rent on a $1550 mortgage does not equal definite cash flow.
Post: How to handle angry tenant?

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@Steve K.
That’s great advice. This was my first and only rental. And this is my only issue I’ve ever had with the tenant. I honestly just didn’t want to deal with her anymore and the deposit is fairly insignificant (to me) compared to the cost I’m going to be doing anyways inside as I prepare to sell it next month.
I may In the future rent out my current home if I move; so I’m still happy for the advice.
Post: How to handle angry tenant?

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@Steve Ehrman The tenant had a different job at the beginning of the original 12 month lease (not working from home). The lease is now just month to month. In Virginia all I can find is reasonable notice given for maintenance which is usually 24 hours.
Post: How to handle angry tenant?

- Posts 240
- Votes 300