• Welcome to our newest affiliate vendor, Passus Shoes. We are very happy to welcome our newest affiliate vendor, Passus Shoes. Passus shoes was founded by long term members of the forum and veterans of the shoes business. and is dedicated to crafting fine shoes in Budapest in a time honored tradition. Please help me give them a warm welcome in their new affiliate vendor thread.
  • STYLE. COMMUNITY. GREAT CLOTHING.

    Bored of counting likes on social networks? At Styleforum, you’ll find rousing discussions that go beyond strings of emojis.

    Click Here to join Styleforum's thousands of style enthusiasts today!

question for experienced landlords

mordecai

Immoderator
Joined
Jul 9, 2008
Messages
11,480
Reaction score
780
My girlfriend and I will be renting out the bottom unit of our duplex and moving upstairs beginning October. We're fixing the upstairs unit at the moment, and would ultimately like to rent that out as well and move elsewhere.

My question is how much more than the cost of maintenance on the home (mortgage, taxes, insurance, some utilities, etc...) makes it worth it to rent out our property? Given the rental market in our area, we could probably make at least $500 above these costs to rent out and maintain both units (minus any unexpected plumbing, electrical, or other problems). is this worth it to move out and find our own place? thanks
 

MetroStyles

Stylish Dinosaur
Joined
May 4, 2006
Messages
15,828
Reaction score
32
That's impressive...you must have put more than 20% down. I made some quick financial projections in Excel and figured I could never recover the costs of owning by renting out, at least not in NYC without a lot of money down.
 

mordecai

Immoderator
Joined
Jul 9, 2008
Messages
11,480
Reaction score
780
We put down 20%, but also got a pretty good deal. The neighborhood is very desirable to a certain niche and duplex's are hard to find here (Franklin Hills). The house is on a steep hill and is over 80 years old however, so we do expect that if we rent it out, we may end up paying for repairs on some things that we would've just lived with. We'll also probably have to deal with some strife between the two tenants and with our somewhat crazy neighbors. Just trying to figure out if it's worthwhile. This first tenant downstairs is going to be the canary for gauging our abilities as landlords.
 

Don Carlos

In Time Out
Joined
May 15, 2009
Messages
7,527
Reaction score
25
When and if you move out of the building altogether, take into account how much time you're really going to have to be the landlord. Because trust me, buildings need a full-time landlord or manager. They are like two month old babies. They can and will keep you up all day and all night, demanding all of your attention. A popular solution is to contract out to a management company or hire a manager. Then, of course, you'll need to factor that stuff into your costs.
 

Blackhood

Distinguished Member
Joined
Feb 5, 2010
Messages
2,904
Reaction score
371
Well if you can find somewhere else to live then you'll be making $500 a month spending money.

The usual equation is: can I afford the Bills (mortgage/utilities) for 6 months when both my tenants run away without paying? If so, you're in a good place to keep a second property and income feeding you money.

If on the other hand that $500 per month will go towards paying for the mortgage on another house ... well then you're back at square 1.
 

Suave

Senior Member
Joined
Aug 18, 2010
Messages
288
Reaction score
0
Originally Posted by texas_jack
buying property with a girlfriend is your first mistake.

women are so spiteful
 

mordecai

Immoderator
Joined
Jul 9, 2008
Messages
11,480
Reaction score
780
Originally Posted by Blackhood
Well if you can find somewhere else to live then you'll be making $500 a month spending money.

The usual equation is: can I afford the Bills (mortgage/utilities) for 6 months when both my tenants run away without paying? If so, you're in a good place to keep a second property and income feeding you money.

If on the other hand that $500 per month will go towards paying for the mortgage on another house ... well then you're back at square 1.


that sounds like good advice, thank you.
 

SpallaCamiccia

Distinguished Member
Joined
Jan 24, 2010
Messages
2,364
Reaction score
6
Originally Posted by texas_jack
buying property with a girlfriend is your first mistake.

Sure, I bought an impressive penthouse with mine and she left me alone with the 1650 euros monthly mortage .
 

MetroStyles

Stylish Dinosaur
Joined
May 4, 2006
Messages
15,828
Reaction score
32
Originally Posted by SpallaCamiccia
Sure, I bought an impressive penthouse with mine and she left me alone with the 1650 euros monthly mortage .

Impressive for 1650? Where? Kosovo?
 

crazyquik

Distinguished Member
Joined
May 8, 2007
Messages
9,079
Reaction score
42
Be very selective with your tenants. It will save you money, time, and headaches in the future. Very selective.
 

dragon8

Distinguished Member
Joined
Feb 19, 2007
Messages
4,685
Reaction score
66
Originally Posted by crazyquik
Be very selective with your tenants. It will save you money, time, and headaches in the future. Very selective.

I agree.
 

bigbris1

Distinguished Member
Joined
Feb 3, 2007
Messages
7,343
Reaction score
12
Make sure at least one of your tenants is handy with a hammer/wrench. You can offer incentives for minor repair work done in your absence.
 

ter1413

Stylish Dinosaur
Joined
Dec 3, 2009
Messages
20,750
Reaction score
3,320

Styleforum is proudly sponsored by

Featured Sponsor

How do you feel about spending money on non-essential goods during the Covid-19 crisis?

  • I don't want to spend money at a time of economic uncertainty, even if I could afford it.

  • I feel compelled to spend to help small businesses that are struggling.

  • I reduced my budget for non-essential goods and I'm not spending at the moment.

  • Not much has changed for me and I'm still buying stuff I can't afford.


Results are only viewable after voting.

Related Threads

Forum statistics

Threads
438,285
Messages
9,442,405
Members
197,844
Latest member
PokéMaster
Top