All Forum Posts by: Aaron Degenis

Thanks for the excellent advice, everyone! I really like the idea of trying it for 2 years and then re-assessing so that I can potentially deduct appreciation of the house. I hadn't considered that particular tax efficiency but it is critical in the Seattle area where the values are going up so fast. That window of time would also allow me to "get my feet wet" and learn whether I even like this kind of investing.

To compare the ROI of investing gains from the sale now vs. after 2 years, I'll have to crunch some numbers... an exercise that's left to this reader :)

If I can get connected with a property management group that I like a lot and the numbers look at least a little favorable, I might give this whole thing a try. Otherwise it's probably not worth the effort and I can defer this learning experience into the future.

 Thanks again!

Hey folks, I heard about BiggerPockets on YouTube and I'm interested in the perspectives of folks in this forum. 

First time posting so apologies if these specific questions make it a "mentor request" (not sure of the definition of that).

I currently live in the Seattle eastside (HCOL area) and I'm considering a move out of state. My job allows full remote work now and I'm thinking now is a good time to move to a LCOL area, where family is etc.

I own a townhouse and I'm considering whether to sell during the move out of state or to hold onto the property and rent it out with the support of a property management company. I never worn the landlord hat and have no experience with what this transition would be like.

I am definitely okay with taking a hit on earnings to reduce stress for myself and minimize problems. I have a very low interest rate (2.5%, 30yr) and 45% paid off. Even if I'm barely breaking even on month to month expenses it seems to me like it's okay since the property has appreciated in value so much already and will likely continue to do so.

As far as analyzing the property from an investment perspective, I think I should at least break even with $2,900 rent, let's say $290 in management fees (10% to be conservative), and $2,400 in HOA + mortgage + taxes.

I think this is a good opportunity see if I like working with investment properties and to learn a lot about this world. Some questions:

1. Do you have any specific recommended videos/guides/resources for this kind of transition (i.e. out of state, first time owning rental property, etc)?
2. Do you have any strategies for finding a good property manager? Do you recommend a big property management company or finding an individual? I know there are other units in my association that are rented out so I'm thinking it I could use the same property manager as the other units for the PMs convenience.
   
3. Aside from existing costs as a home owner and property management fees, what other monthly costs should I think about? I'm imagining my home owners insurance would need to change somehow but I don't know of other things.
4. For those that have done this sort of transition, do you have any lessons learned you could share with me?

Thanks for your time! I really appreciate this website as a resource and will keep trawling through old forums posts.