Renting your house vs selling it

kahiljabroni

kahiljabroni

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Going to be looking to move at some point in the next 5 years. I'm considering keeping my house and renting it out. Anyone have experience doing that?

It'll be paid off in ten years... figure I can rent it for 3k per month. Once the mortgage is done it would produce a nice yearly income while also appreciating between now and when I retire.
 
It's more complicated than that. And a bad tenant can cost you a fortune - think months without rent while you go through an eviction, then tens of thousands of dollars in repairs. Be careful.
 
Milgrim said:
It's more complicated than that. And a bad tenant can cost you a fortune - think months without rent while you go through an eviction, then tens of thousands of dollars in repairs. Be careful.
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This is why we have wood chipper rentals.
 
Be very selective in who you rent to. Learn from people who've learned by making the mistakes. There's a checklist of qualifications you should look for before deciding who to rent to and even then it's not foolproof. Source; a good friend who owns 80+ units...
 
Up here the law protects the tenant a lot more than the owner, so if you get a bad tenant you could lose a lot of money and go through some serious aggravation. It’s really hard evicting someone even if they simply decide to stop paying rent.
 
kahiljabroni said:
Going to be looking to move at some point in the next 5 years. I'm considering keeping my house and renting it out. Anyone have experience doing that?

It'll be paid off in ten years... figure I can rent it for 3k per month. Once the mortgage is done it would produce a nice yearly income while also appreciating between now and when I retire.
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Where do you live? The way the market is going, it's likely to appreciate a decent amount that beats the index fund return. You do have to factor in at least a month's rent per year for any repairs. Will the rent cover the mortgage?

If it's in a decent spot, I would rent it out. The key is finding a good tenant. In my experience, making less money a month with a good tenant beats charging a higher rent but with iffy tenants.

mb23100 said:
Rent to gay men. No kids, small dogs and they aren't going to be tearing apart motorcycles in your living room.
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<PlusJuan>

You can even hit on prospective tenants to determine if they are gay or not, or just ask politely

why-are-you-gae-meme.gif
 
kahiljabroni said:
Going to be looking to move at some point in the next 5 years. I'm considering keeping my house and renting it out. Anyone have experience doing that?

It'll be paid off in ten years... figure I can rent it for 3k per month. Once the mortgage is done it would produce a nice yearly income while also appreciating between now and when I retire.
Click to expand...

Check local laws to see if you can even rent it. Renting seems like a hassle to me. Hard enough to keep up with my own house let alone a second one.
 
What it really comes down to imo is whether you are prepared to get that 3am call that the water line burst.
 
It all comes down to the quality of the tenant. 3k a month either keeps out the dregs or has a bunch of them congregate to split the cost. I'd say sell it
 
Otto! said:
Up here the law protects the tenant a lot more than the owner, so if you get a bad tenant you could lose a lot of money and go through some serious aggravation. It’s really hard evicting someone even if they simply decide to stop paying rent.
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Was about to say to TS do extensive research regarding landlord and tenant laws in his area.
 
If you're willing to put up with everything that comes along with having tenants then rent it out. It's not going to be all roses though.
 
badascan said:
Be very selective in who you rent to. Learn from people who've learned by making the mistakes. There's a checklist of qualifications you should look for before deciding who to rent to and even then it's not foolproof. Source; a good friend who owns 80+ units...
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Is your friend Grant Cardone?
 
deadshot138 said:
Is your friend Grant Cardone?
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no, but he loves him... He has a large container in his kitchen with about a hundred grant cordone wrist bands saying different things like "don't be a bitch" and "no excuses"...
 
My sister hired a company to pretty much manage the whole thing. I would do that. She’s very frugal so if she did it than it’s worth it.
 
method115 said:
My sister hired a company to pretty much manage the whole thing. I would do that. She’s very frugal so if she did it than it’s worth it.
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Rent it and do this. Will you have enough to buy another house as you rent this one out?
 
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