/biz/ - Business & Finance

>>50291762
number go up!

Only if you have a separate emergency fund that will cover your mortgage for at least 1 year and that’s pushing it.

>>50291762
>i think
oof. big mistake.

>>50291820
Explain

>>50291762
>>50291762
Propertychad here, tune out all the brainlet rentcucks ITT. Zestimates are total bullshit, they're pie in the sky numbers designed to prod property owners to sell. If you get an actual appraisal it will come in below that.

Property value is kind of moot though if you're going to keep it and rent it out. The amount you'll get in rent depends not on the value but what similar units (same BR/BA count and similar square footage) are renting for in your area. The most important things when it comes time to rent is proper tenant screening, an airtight lease, and budgeting for repairs/capex/maintenance. Make all applicants pay an application fee that you turn around and use to pay for the credit and background check (many services for this). You can get a plug and play lease specific to your state online. The one i use is like 7 pages and covers my ass completely. Like >>50291791 said save for a rainy day. You WILL have expensive repairs to pay for, it's not a matter of if, but when. I just shelled out $2200 today for a new water heater in one of my units.

Do some more research and dive deep on rental real estate. It might be a great idea in your situation, but it might not make sense if the numbers don't shake out or if you feel like you don't want to put in the effort.

>>50291864
You're not supposed to think

>>50292076
Thank you for the detailed reply, senpai. Do you recommend getting a property manager or just managing it myself? I am planning on moving 90 minutes away. The house I’m living in now is in a prime location next to a major hospital and university, so there are constantly rich professional types coming and going, looking for year long leases. Plus there is a big shortage of houses here. They’re building some apartment complexes currently, but no one seems to be building single family homes, so the demand remains high. You think $1000 above my mortgage payment is enough of a margin?

>>50292076
based landchad, only a matter of time before the rentcel commies show up and start attacking you for playing the game
Setting up my second rental property. it's a lot of work to get them setup, but afterward it's just smooth sailling. Getting all the carpet replaced with LVP, final cleaning, marketing photos, digital staging and boom - it's on the market at a higher rate.

>>50292239
Personally I would get it managed. I managed a property 90 mins away from where I live and it went smooth for the most part but was absolute hell when I had to go through eviction which involved driving 3 hours to get the eviction notice delivered, and fixing the place back up which was another couple 3 hours trips. That's an inefficient time sink. Or I could have had contractors fix everything and it cost me an arm and a leg for pittle work. Now, the money comes in every month and I will occasionally be called and emailed for capex expenses, now its just a game of money management. None of the nitty gritty of operations. Only worth managing yourself if its in your local jurisdiction and you're willing to be pestered by tenants... also if you are managing it yourself, don't let the tenants know you are the landlord. Run it through an LLC. You need that second degree of separation to make it seem like you are only just an employee at a property management company (because you are, at your own company [and pay for a service to hide who owns the company]).

>>50292398
So in short, its generally just better to let it be managed for you. You want the money, not the screeching rentoids texting you at 9pm asking for a microwave repair

>>50292398
Nice. Thank you for the advice, man. What is a fair rate for management of a single family home?

>>50292462
depends on the location, in a fairly remote small town I'm paying 10% and in a metro hub I'm paying 15%

>>50293361
based. The area im in is considered rural, so I’ll shoot for 10% if I can get it