All Forum Posts by: Alex L.

We purchased it in 2019, so 3yrs in... I guess doesn't the whole rent the house for 15 or 20 years and have someone pay your mortgage component not apply while it cash flows? Is it only because we have it as a primary first and it happens to have this added bonus of tax-free appreciation if sold within the first 5 years or lived in for the first 2 or whatever the rule is? My appreciation is small because I bought it as the appreciation was already kicking up vs a year or two before. The general area is appreciating in pace with other hot areas of the Twin Cities/Metro. Also, at the moment I would be trading money from the market to real estate and vice versa...

Numbers: 

- $3,000 mortgage includes taxes & insurance

- Likely rentable at $4,000, maybe more, $3,500 worst-case scenario, but currently renting a $400k(purchases for $260) house down the street(our first house) which is 70yrs older and a starter home for $2,595, so hard for me to believe this doesn't pull towards the top, but that's why I was looking to see how "higher rent" properties fair. 

 We purchased the property a few years ago, so its gone up like $100k, but nothing crazy like if we purchased it 5+ yrs ago. I'm not following the tax burden if the home has appreciated though. Could you explain that more? Thanks in advance!! 

Considering*

We are in the process of getting another personal residence and I'm considering renting the one we live in currently out. We did this with our first home which was a starter home and was more of a no-brainer. This was an upgraded home, currently valued at $750k or so. Is there a demand to rent at this price point? Comparative listings in terms of beds and baths are lower than what I would want to get, but those are starter homes at half the price of ours. Luxury apartments in our area are running $4000 - $6500. Would it be abnormal to charge 4k - 6k in rent? Is there a market for these types of rentals or should I just sell it?

Interesting to wait. Our market is tight with options, single-family houses in this specific neighborhood vs apartments, condos, townhomes, etc. Thanks for the feedback. 

Hi, my first rental is up for a new tenant(I have only had one since turning it into a rental). I listed the property and found a new tenant that has completed an application, screening, application fee, is qualified and is ready to commit. However, the lease doesn't start for 3 months. My current tenants gave me a large heads up and I was able to find someone within a week of them telling me.

My question: Do I have them sign the lease now and do a security deposit or do I wait until it's closer, week, etc, and do it then? It seems like I should have them do a deposit and sign the lease now, but maybe you legally can't?