Thoughts on being a landlord

[hamburglar3]

If you can pay it off, you can sell it and carry the mortgage for the buyers. No taxes no insurance, etc. new owner does all that for you. You can usually get 1% higher apr also. You only pay income tax on the interest part of their monthly payment

 

[spencer60]

Unfortunately I can't pay it off completely since I need that money for closing, moving, etc.

An owner-financed sale would be ideal. I could offer a decent rate since mine is so low. But that pretty much means selling to someone I already know from what I've heard...

 

[hamburglar3]

. But that pretty much means selling to someone I already know from what I've heard...

There are plenty of folks who make a good salary but cannot qualify due to rating, etc. that’s why you can get a bigger down payment and higher rates, to cover your risk.

 

[Just Plain Bill]

what he said!!!

Absolutely! Had 4 in the US. Never again. I actually owned property in China that I rented out with less hassle!

 

[Just Plain Bill]

Additionally, courts lean on the side of renters. Evictions take time and cost money. An eviction can literally take months during which time they are still living in your property. And you can just bet they are taking good care of your property once they get an eviction notice!

 

[MrJim]

Additionally, courts lean on the side of renters. Evictions take time and cost money. An eviction can literally take months during which time they are still living in your property. And you can just bet they are taking good care of your property once they get an eviction notice!

Yep. Then they move without their stuff and you have to drag all their **** out to the road. Then they came back for the **** and had taken a window ac unit out and loaded it onto their trailer. Fortunately me n deputy showed up while they were still there. Never again

 

[GeauxLSU]

Thanks for the feedback everyone. It sounds like the rental idea is probably a no-go then... Just clean up the place and put it up for sale when I move.

Yep! As of this last spring, this is the first time in 30 plus years where I only own one piece of real estate. The piece I live on. I cannot tell you how much more relaxing it is.
Life is short. Minimize the aggravation.

 

[CQB27]

Huge pain in the ass.

Bottom line up front…..thread!

 

[boomer]

So, I'll be moving later this year, but my current home (a townhouse) has a pre-pandemic mortgage rate (<3%) and is in nice neighborhood, so I was thinking of renting it out rather than selling it outright. Not Air-BnB or anything, just a traditional year-at-a-time lease.

The house is in good shape, the grounds are maintained by the HOA, and I have contractors I can call for any mechanical issues so it shouldn't be a big management hassle.

My main question was whether I should create an LLC for it. I'd hate to have a tenant fall down the stairs and sue me personally, although I guess the lawyer costs would come out of me either way. Does an LLC make sense for a single rental property?

Also, any other thoughts on being a landlord would be appreciated.

with a 3% mortgage I would raise my selling price and let the new owner assume your 3% and maybe hold a second if the price is high enough. Just a thought ...

 

[roundhouse]

Took me 14 months to get my non paying tennants out

They paid on time every month for the first year ,
Then the second year they paid on time about two months and just stopped paying ,
Every time their court date came up they claimed to test positive for Covid so it got delayed

course they had moved in two more people so there’s four adults that can’t scrape up the rent , only one of them had a job , but they all managed to have money for new tattoos and plenty of cigarettes and beer and new fancy rims on the cars

Cost me $500 to haul off their junk

Cost $600 and took 9 weeks to get rid of the fleas so I could get inside

They didn’t tell me the roof was leaking so the ceiling and sticky insulation fell down in one room

Their washing machine leaked so the floor in the laundry room was rotten and not safe to walk on

I sold the place and the new owner bulldozed it and brought in a new modular double wide that met the requirements of being a normal house

Renters are deadbeats and losers

There’s a reason they are not owners .