All Forum Posts by: Bill Ward

Sounds like you're getting in the middle of something you shouldn't be. If they want the other party out of the house they need to contact police or the courts and get a protective order barring said person from the residence.

@Jon Puente So my current primary house would make a decent rental by numbers with a PM, (PITI $1100, Rent $2000) and I'd only be moving to get out of a flood zone and downsize. If I used the sale proceeds and did buy a house (not likely but keeping options open), the new house value would be in a nicer area and much higher than my current rental property is. What I had been leaning toward was just investing the majority of the proceeds into stocks or a mutual fund, etc. Estimating $60k-80k left over after all fees and taxes. I felt like I could get an equal return through investing without the potential downsides of rental expenses. I'm trying to prepare myself to get into retirement in my early 50s. I'm 37 now.

2- by not being a landlord anymore I mean if I continue renting I will use a PM from now on. Keeping the current rental with a PM will be no cash flow (off set by the rent increase) and only a loan paydown of $500 a month and also I do not expect that house value to go up any more any time soon, as it went up significantly already.

3- I don't have the desire to seek out new rental properties or investment properties, I just happen to be living in one that would work now because I got it in a short sale at 2.75% (that I bought with the ex and her kids but I'm single now and no longer need the extra space).

I'm constantly flip flopping so maybe it doesn't matter which way I go, I'm leaning toward selling my one rental that used to be my primary. Tenant moves out this week and I'll remodel and replace flooring inside, expecting $10k to prep it for sale.
Purchase price was $123k in 2010.

Estimated sale price: $190k
Mortgage: $70k left for 9 years.
PITI is $970,
Rent expected to be $1500 for next tenant.

 I don't want to be a landlord anymore so it's either use a PM or sell. No immediate plans for the money after selling. If I find a house to move to I would buy that and rent out my current home. The house has been basically breaking even, tax advantages are minimal. I feel like keeping it is just waiting for something expensive to happen in the future. I'd rather be more passive. I made great appreciation the 4 years I've rented it, and loan paydown went from $98k to $70k since 2018.

I want to keep it only because houses are so expensive I feel like I won't ever have another, and I have 2 now. But I want to sell because I don't want a headache tenant in the future or major expenses.

 Push me

Quote from @Stephen Groves:

@Joe Villeneuve that is helpful. Cash reserves are not an issue for me. I guess I am viewing it as a long term

Investment. Say over 20 years it ends up taking even 40k out of my pocket. In that scenario, I invested 40k over 20 years and ended up with a building that will quickly resell at 200k or more or can be held to generate significant income once it is held free and clear. I don’t have other non real

Estate investments that can go from 40k to 200k in under 20 years.

Just FYI 40k at 20 years is just under 9% interest yearly, if you could beat that more passively. 

 I'm pretty sure the cash invested includes your down payment. So if you spent $145k of your own money, and you cash flow $1k a month, then it take's 145 months to get your money back. Excluding loan paydown and appreciation. 

When I first started I had new carpet in the house. So as a 'reward' for tenants being good, I paid to have professionals go steam clean the carpet twice a year. One time after a move out it had pretty bad dog smell. Steam cleaning myself (many times) I  was able it to get it back to usable condition and it lasted for one more tenant. It's been 5 years of tenants and it's time to replace. Going to LVP next. 

Just FYI, $2k rent on a $1550 mortgage does not equal definite cash flow. 

@Steve K.

That’s great advice. This was my first and only rental. And this is my only issue I’ve ever had with the tenant. I honestly just didn’t want to deal with her anymore and the deposit is fairly insignificant (to me) compared to the cost I’m going to be doing anyways inside as I prepare to sell it next month.

I may In the future rent out my current home if I move; so I’m still happy for the advice.

@Steve Ehrman The tenant had a different job at the beginning of the original 12 month lease (not working from home). The lease is now just month to month. In Virginia all I can find is reasonable notice given for maintenance which is usually 24 hours.

Update: She has already paid her final rent, so I have received everything. The deposit has already been returned, just waiting for 4 weeks for her to vacate. I advised her there was no extra compensation and sorry that she didn't feel the early return of full deposit was enough. Her response was "Noted! Timely manner is a part of the lease". I haven't responded as it will only be an argument. Thanks everybody for the advice.