All Forum Posts by: Bryce McBride

I'm very new to learning about real estate, and have some questions. I'll have more after this but my other questions could change based on the answers i get. I'll admit, they may be stupid, it scares me enough that i want a very detailed introduction book that tells me everything to do. I know that it won't happen and would be impossible as we are all different.

Anyway, I bought my house 6 years ago and got a really good deal. Now, having learned about real estate, I really want to put it up for rent. I have probably put $12,000 into it since living here. How would you this calculate the return on investment when the time comes to rent it out? Would you use what i spent over the years in mortgage payments? Would you add cost to repairs that I've done? Or would you simply say that on the day i move out and make it a rental property, then all repairs/costs get counted in my calculations?

@Mindy Jensen

I really want to learn the basics of real estate taxes, however, this came out in 2016, there have been major tax changes since. How much of the book is still relevant?

@Drew Heiss thanks for the site, it has some good info!

@Kevin S. Thank you very much! I well go check them out :)

I'm thinking to put my house up for rent instead of selling. Home prices are craxy high in my area. I bought my house 4 years ago and is practically doubled, from what i can tell. Rent has sky rocketed to. Since renting out my home is a new concept for me, i haven't really been following the market, in regards to looking up rent prices. I've went to a few sights with rentals listed and there are only 8 or so listed, only 2 are some what comparable to my home. I have no idea what are the best sites to go to veiw/list rentals. Are sites that give a rent estimates accurate? What are good web sites to check out? And i know that no site will know my house better than me, just what ideas.

Also what else is there for me to do to determine the right price to charge for rent? Thanks!

@Brian Van Pelt thank you. More numbers might make more sense. If i refinanced i should be able to get $100 more in my pocket per month. If it cost me $3000 to refinance my house, than my cash on cash return on refinancing alone is 40%. $1200/$3000=.40 x 100 is 40% that looks great. But that stretches out my debt, and i spend more on interest. As a home owner i feel that paying off the debt is best. As an invester, increasing cash flow seems like the way to go. I'm putting myself in both directions and not sure what to do lol

@Bjorn Ahlblad thanks for the info! Figured that was going to be the answer. I just need to learn more about screening lol

@Tim McKelvey thank you and you are absolutely right, i differently focus on the negative side of things. Fear controls me. Luckly and surprisingly I don't run from problems. As i learn more i know a lot of my fears will pushed away.

I have a 30 year mortgage, with about 20 years left. Putting the BRRR method aside, i want to start generating income from my house, when we move. Although i could make an okay cash flow now, would it be wise to refinance my home to another 30yrs when i rent it out. There by increasing my cash flow?

I love the idea of real estate investing and have been learning so much recently. However i will admit that the "all the what could go wrongs" has me froozen in my tracks. If i were to buy a house in my market, which i prefer starting out i may only pull in maybe $200 hundred or so dollers extra pre month. After half or so of the money is saved for future expenses. If anything goes wrong that could easily erase years of income. For instance i just talked with an acquaintance who told me that he recently sold his rental property because of problems. He explained that the tenant had used meth in his rental so the State had to condemn it. It cost him $12k to make the necessary repairs for the State to allow poeple to live in it again. Not wanting more trouble he decided to sell it. I asked if he took the tenant to court to get his 12k back, he said no, the tenant doesn't have that kind of money.

I'm not someone that likes to sue (and never have) but if i had a rental where someone used meth, even if they didn't have money, could i sue them for the expenses and legal fees? Basically can i force them to declare bankruptcy so i get my money back?