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Updated over 1 year ago,

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Evan P.
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How do I get started in KCMO? (have SFH to rent out)

Evan P.
Posted

Hi, I made account to ask question after not finding anything browsing on my own. I'm in the process of buying a new house (kids moved out, don't want the yard/etc) and I'm stuck on what to do with current house. I own the house (no mortgage) and while I could sell the house and put money towards paying off mortgage of new house, I'm inclined to keep current house as a rental. This is where I need help, I'm clueless on how to get started. 

The house would likely need minor work to get it into rental condition (fresh paint/cleaning carpet/etc) which I would do if I sell house regardless. I'm wanting to use a property management company (any recommendations would be welcome). I looked on google and property management companies seem to offer a maintenance service. Does that mean they would fix up the house for me at a reasonable price to get it ready to be rented out? I don't know what is "required" by law that a house needs to be rented out. I can overlook minor things living there myself but not as a rental/landlord. And does this "service" include lawncare as part of the property maintenance? I currently pay someone to mow bi-weekly but I don't know if renters mow it themselves or if management company would (I can see renters both not wanting to hassle with it, or wanting to do it themselves to keep people off property/reduce rent). House itself is older but in livable condition since I'm living there. Roof/AC/hot water all replaced in last 10 years, so no foreseeable "major" costs. 

The last questions are on taxes / LLC / income estimate. I understand that LLC is a good idea, but not sure if it is required for a single rental / worth the hassle of yearly cost (don't want to turn landlording into "job"). Also since I've owned the house for 20-30 years, I can't depreciate the house since I've had it for over 27.5 years? Any other tax advice? I've played with the numbers a little based what I found on Google. 3/1 house in Gladstone, MO seems to rent out for around $1300/month. Based off that, after subtracting out property tax, insurance, management fees, vacancy, I'd net around $300/month profit? I'm not sure if my "guesstimate" is close or not.

TLTR: Downsizing house, thinking about keeping house as rental incase kids decide to come back / retirement income. If turning house into rental, I have no clue where to start so that's why I'm here. Also seeking property management company recommendations.