It sounds like renting isn’t a terrible idea for you. If you decide you don’t like being a landlord, you can always sell it later.
Should I turn a house into a rental, flip it, or sell it outright?
- Thread starter tranger2
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Sell it. Get as far away as possible. I'm going through this now. Haven't been paid since mid December. Whoa is me stories. And the state it's in doesn't allow for me to remove them without a long legal process.
I have had decent luck with renters paying me but some do mess up the floors and walls.
One month down time and it is rented again.
Now the main thing I look at at my age now 56 is how much money will i put in my pocket.
I have a house right now worth 200K easy quick sell and my son lives in it and pays me
700 a month (mothers fault) It would bring 1400 a month.
Math 700 x 12 = 8400 then minus taxes and insurance =4800 profit a year if nothing breaks.
Multiply that times 10 years 48,000 but taxes and insurance will go up as will repairs.
1400 a month x 12= 16,800 and then 13,200 after tax and insurance.
132,000 in 10 years in pocket you still own the house and can sell it.
At 700 a month i would sell it as I would need to live into my 90's to see a profit larger than selling it.
Now I have a house I have 15K into it including purchase price and it gives me 700 a month.
I will keep those cheap ones 2 bed one bath.
Normally that expensive house would pay all my taxes and insurance on all my houses and vehicles but as it sits now with my son in it it is costing me dearly.
I could pay my son 400 a month to get out of it and I would make more money.
No one sees it like I do.
One month down time and it is rented again.
Now the main thing I look at at my age now 56 is how much money will i put in my pocket.
I have a house right now worth 200K easy quick sell and my son lives in it and pays me
700 a month (mothers fault) It would bring 1400 a month.
Math 700 x 12 = 8400 then minus taxes and insurance =4800 profit a year if nothing breaks.
Multiply that times 10 years 48,000 but taxes and insurance will go up as will repairs.
1400 a month x 12= 16,800 and then 13,200 after tax and insurance.
132,000 in 10 years in pocket you still own the house and can sell it.
At 700 a month i would sell it as I would need to live into my 90's to see a profit larger than selling it.
Now I have a house I have 15K into it including purchase price and it gives me 700 a month.
I will keep those cheap ones 2 bed one bath.
Normally that expensive house would pay all my taxes and insurance on all my houses and vehicles but as it sits now with my son in it it is costing me dearly.
I could pay my son 400 a month to get out of it and I would make more money.
No one sees it like I do.
I will send you my wifes # - she is a broker -appraiser ect. She helps lots of people with their homes
Call Rebecca @ Elite Realty and she would glad to look it up and give you a realistic idea of the homes value. She will let you know what would be best for you. For Free! Her # is 405-863-2532
I had 7 when I retired at 55 - sold one/yr and was completely out at 62 when SS started
I always enjoyed handyman work so it was ideal for me -- but agree its not for everyone
you might also consider using a rental outfit to take some of the load off - most do a pretty good job of getting good renters and doing maintenance -- I think they charge something like 10% of rental
you might ask your tax guy how to value it to start depreciation
last I heard there is a good market for companies buying property for rental purposes so you might get top dollar in the current market
I have owned as many as 28 single Family homes (all in Edmond)...I have converted to now only having 5 but now have 26 Commercial doors.
The answer is easy in this situation. Sell it.
Being in the rental business is a volume game...anyone that would only want 1 or 2 is going to hate it. You'll notice that most people on this thread that act negative had 1 - the ones that acquire multiple properties are able to be successful with it.
Imagine having a car dealership with 1 car; you get all the headache of the business with no volume to make it worth it.
The answer is easy in this situation. Sell it.
Being in the rental business is a volume game...anyone that would only want 1 or 2 is going to hate it. You'll notice that most people on this thread that act negative had 1 - the ones that acquire multiple properties are able to be successful with it.
Imagine having a car dealership with 1 car; you get all the headache of the business with no volume to make it worth it.
I spoke to you many years ago when I had the same situation come up...the death of a relative and the sudden acquisition of a house. I ended up fixing up the house (new tile, new cabinets, countertops, texture, paint, etc) and doing a lease to own. Worked out well for me as I am tight and do the majority of the work myself (I have the time). Same situation arises again.
Your comment makes the most sense to me right now, but I'm still trying to decide...
I rented a house once and the first people took pretty good care of it, but the second family ruined it, so I had to redo it again. After fixing it up we sold it. I didn't want to deal with people and their problems anymore
If you do decide to rent the home, I recommend to NOT rent to a relative under any circumstances. They will be late on rent, fail to pay rent and if they create damage they will expect you to hustle over there and repair things. I rented to my son and his wife a home for $220.00 and repeatedly they took advantage of me. I finally gave them $1,000 to move out and I took possession.
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