Anyone here have rental property?

[Intel]

Doesn't the occupancy clause usually only require you to live in the home for 1-2 years?

 

[Jack]

Doesn't the occupancy clause usually only require you to live in the home for 1-2 years?

usually, but it can vary from lender to lender.. which is why I told him to check his docs. For some reason my clause did not have a end term, only that I occupy the home within 30 days of closing and then notify the lender should my occupancy status change.

I never notified them, other than to change my billing address.

 

[Intel]

Yeah hard to say what to do there as usually they would notice if you change your type of home insurance. Was just curious as I have only seen 1-2 year stipulations when I looked. Some people got around that in various ways by renting out rooms to people but it doesn't make me feel great.

 

[b00sted]

1. I'd advise against hiring a property manager unless you're moving far away... There's no need to have a property manager for just one property. Don't let anyone pick out a tenant for you either...You'll be so much better off it you have to keep it vacant for an extra month just to find that perfect tenant. Leasing agents and property managers don't give a fuck who they lease the property to...It's not their money or their property, they get paid the same regardless.

2. Plan on spending money in between tenants to paint, replace carpet, etc. Wear and tear isn't covered by the tenant's security deposit.

3. Do your own repairs if and when you can. We usually write in to the lease that the tenant is responsible for maintaining the grass, landscaping, snow removal, etc. They're also responsible for the appliances. That way, we only go in there to fix more major stuff like HVAC, plumbing, etc.


Due to the mortgage, don't expect to make much of a profit. The profit you do make will usually go back in to the property for repairs, upkeep, etc. The mortgage will eat up most of the income. Basically, you're just letting someone else pay off your mortgage for you...Once it is paid off though, you have a bunch of free equity in a house that pays you a nice amount of money each month.

 

[Yaj Yak]

I'm remembering soemthing along those lines now too, I'm quite sure that mine was only for a year though.

 

[1quick]

Renting seems like it would be a pain in the ass, I thought about it the house across the street is foreclosed and dirt cheap but it would take 5ish years to brake even would be a good long term investment

 

[Yaj Yak]

Renting seems like it would be a pain in the ass, I thought about it the house across the street is foreclosed and dirt cheap but it would take 5ish years to brake even would be a good long term investment

For me... I would double my money. The money I spend currently on tax/payment plus insurance... I could rent out my house for 2x that

 

[1quick]

That's a good deal, I have thought about buying another house but I hate the thought of making double payments if someone dosnt rent it or if they are dead beats it takes 6-8 months to be able to evict someone and you have to take them to court to make it happen, my wife's old boss has 6-7 rentals and he hates them because of that

 

[Yaj Yak]

That's a good deal, I have thought about buying another house but I hate the thought of making double payments if someone dosnt rent it or if they are dead beats it takes 6-8 months to be able to evict someone and you have to take them to court to make it happen, my wife's old boss has 6-7 rentals and he hates them because of that

It's a gamble for sure... I wouldn't over extend myself though.

I know of plenty of people who do it very well and are very well off because of it.

 

[ktraver97ss]

usually, but it can vary from lender to lender.. which is why I told him to check his docs. For some reason my clause did not have a end term, only that I occupy the home within 30 days of closing and then notify the lender should my occupancy status change.

I never notified them, other than to change my billing address.

x2

 

[ktraver97ss]

Dude, for double your mortgage and taxes you would be dumb not to do this. Even if you have to rent something yourself for a while.

 

[Yaj Yak]

Dude, for double your mortgage and taxes you would be dumb not to do this. Even if you have to rent something yourself for a while.

That's what I am thinking, just trying to figure out the best way.

meeting with the mortgage guy tonight

 

[Yaj Yak]

So meeting with mortgage guy- I'm a hell of a ways out- but at least I have an idea now of what is necessary...

he said 3 months renting my house out is good enough for his loans... also said I am good to rent out my house whenever I want.

Said that I would need 6 months of reserves to pay both the mortgage and taxes for my home as well as the one I am looking at buying though... that in itself is a good chunk of change.

All in all, it was a crap shoot and a half, but I am glad I know what I have to do now.