All Forum Posts by: Bill Ward

This sounds like a bad idea. Why do you want to rent out this particular property if it doesn't cash flow? How much would you make if you sold it?

@Scott Rovner if you're planning on a new mortgage payment of $1800 and rent of $2200, I wouldn't expect much if any cash flow, especially not significant cash flow to dent your debts.

@Carlos Lopes here's my real world example. I've been renting out my previous primary for 5 years. I had refinanced at 3% for 15 years prior to moving out. House was valued at approx. 125k when I moved out. Rent was 1200 and PITI was about 900 originally. It was basically breaking even cash flow wise. Luckily home values have gone up, the sale value now is about $210-220k . Tenants were paying $500 a month on the mortgage, only about $140 or so was interest. Tenants paid mortgage down from $98k to $68k now. I'm prepping it to sell, and house needs major repairs now (30k). So I'm paying that out of pocket to be reimbursed by the sale price later this year. Had I not been selling, this would all be out of pocket expense due to no saved up cash flow.

Rent value now is about $1500-1600. If I change my mind and keep it, I can now use a property manager to handle it, which stops any headaches but goes back to little to no cash flow. If I continued to self manage, it would be cash flowing.  

Just been hearing about this lately. So to those smarter than me, is this dollar crashing a likely thing to be happening now and is it relevant to property values? I'm about to sell my rental (unrelated) and not sure if it's that big of a deal where I need to stock up cash or if cash and/or housing will drop significantly in value. If so, which would be better to be holding onto? Just curious

So did you put zero down? And $400 over PITI is not 400 cash flow. 

I fix and flip lawn mowers during the spring and summer for about $6k lol

@Nathan Grabau Thanks that's what I figured, I'm in no rush. 

My rental property is vacant and I'm doing repairs, expecting to sell when I'm done. I keep getting calls from investors trying to buy, but usually 75% of what I expect to sell with an agent ($190k vs $150k). I've never sold a house and I don't mind paying an agent's fee for their assistance, but the investor told me he would pay everything and I didn't need an agent. I feel like I should have an agent or a lawyer or someone smarter than me to help get through all the paperwork and the process to make sure I'm not getting the short end of the stick and looking out for my interests. Or is selling to someone like that really that simple as agreed price and sign?

Thanks

@Nathan Gesner

Is it rude to tell someone he can call me later? Or to decline his self invitation into my house? He came up to me while I was busy and asked me my rent and then went on to say it was too high. Thanks but I’m not looking for a him to be my coach or get permission on prices.

I was busy, it’s selfish of him to think I have the time or desire to stop what I’m doing to start showing him inside not my house. He asked if I had a few minutes and I said no. That’s a perfectly acceptable answer to his yes no question, and he was offended I said no.

I stand by it.

So today's the first day I got into my rental after the tenants moved out. Starting to assess what work I need to do and removing trash. As I'm carrying trash out the front door, a man walking a dog on the street asks for me by name. I said yeah that's me and he asks if I'm buying or selling. I said I'm selling or renting. He introduced himself and said he owned several homes in the area. He asked how much I was going to sell for and I said $190k, and then asked if I financed it or had the deed and if it was a VA loan. He asked how much for rent and I said $1500. He said that's pretty steep, (having no need to debate or care to argue) I said well then you don't have to rent it. Meanwhile, my father was with me inside the house and I'm trying to get stuff done. Then he asks if I have a minute can he come inside and talk to me. I said no. He didn't like that and seemed confused. I said no, you can call me later if you want. He then said I didn't have a great attitude and walked away.

He knew my name and my occupation, guessing he did some kind of research. Was this him trying to get info to buy my house and rent it out? Just seemed odd, and to randomly walk up to me and invite himself in.

Anyways, that's my day. Pretty sure the center of the house is sagging and I need to get some supports added after raising some joists. No idea what I'll get charged for that.