4.5 acres? You expect a tenant to maintain that?
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Big financial decision I want to be smart and need real advice.
- Thread starter bulletpaluza
- Start date
Yeah really sooner then that to be debt free.
But I guess selling is the best option. I just dont want to do so
Its 100% wooded there isnt even a lawn to mow I am pretty sure anyone could maintain it.
Agree. Take the money from the house sale and invest it. The returns on your investment will be (should be) much higher than the new house mortgage rate of between 3 or 4%.
I kinda agree..... Only, I would pay down the mortgage on the new house in turn lowering the payment. Lower payment leaves you with more disposable income every month so you can dollar cost average into an index fund or time horizon fund. Edit: Pay yourself first. Only way this will work
The smart thing to do is rent it out if you are cut out for it.
But you need peace of mind, too, so selling may be the best option.
I've had the best and worst of tenants. The older I get the less patience I have...
But you need peace of mind, too, so selling may be the best option.
I've had the best and worst of tenants. The older I get the less patience I have...
I’ve been a single property landlord before and it sucks. The way the current tax laws are now it doesn’t really become that big of a benefit either. Knowing what I know now after being a landlord ain’t no way I’d do it again. I think the 4.5 acre property would sell fairly quick because everyone wants a little piece of tract. If I were you At 31 I’d take the sale and invest some of the money and pay down the new mortgage with the rest. Maybe a target of being 40-42 with no house note. At that point you should be further along your career path to take advantage of increased income and dump money into other investments.
It's Saturday 3am and the phone rings...my toilet won't flush and is running everywhere in the house. Yep, that's what being a landlord is. Also, I'm a little short this month, can you cut me a break (until I trash the house and you have to evict me in 6 months without paying you a cent). Sell it and don't look back. If you rent it, figure on having it trashed and you still having to make payments and fix it back up at a later date.
You should sell for a couple of reasons:
1) unless you can get $2-2500 rent then sell.
2) Taxes might be higher depending on your county because of homestead exemption. Insurance will be higher.
3) It will never be as nice a house after a rental as it is now.
4) You can not evict anyone right now.
5) As others have said being a landlord with 1 house is a pain.
6) You can sell today and the gain is not taxable vs a gain on a rental property is taxable unless you 1031 exchange it into another property which will keep you as a landlord or in some kind of like investment.
7) If you decide to sell it with a tenant you will sell at a discount as investors do not want to inherit your tenant.
8) no tenant will take care of acreage like you probably have done.
9) you will have additional accounting expenses.
I have been a landlord for 17 plus years. It's been great for me but I'm getting older and will start getting out of it as I age.
Good luck
1) unless you can get $2-2500 rent then sell.
2) Taxes might be higher depending on your county because of homestead exemption. Insurance will be higher.
3) It will never be as nice a house after a rental as it is now.
4) You can not evict anyone right now.
5) As others have said being a landlord with 1 house is a pain.
6) You can sell today and the gain is not taxable vs a gain on a rental property is taxable unless you 1031 exchange it into another property which will keep you as a landlord or in some kind of like investment.
7) If you decide to sell it with a tenant you will sell at a discount as investors do not want to inherit your tenant.
8) no tenant will take care of acreage like you probably have done.
9) you will have additional accounting expenses.
I have been a landlord for 17 plus years. It's been great for me but I'm getting older and will start getting out of it as I age.
Good luck
Nice tract of land in the middle of nowhere with standing timber or can be easily planted would be a much more relaxing investment. You'll hate yourself after the first tenant from hell. I had plenty of them when I was in the game. Just my two yuan.
