All Forum Posts by: Dana Wilkie

 Well, in theory anything will rent at the right price. In reality, you're not going to want the kind of tenants that want what you have to offer but aren't in a position to buy. Anyone who wants to live in a rural area with buildings for animals and land is going to have ATVs, all kinds of animals, and probably hoarding tendencies because they're out in the country. They're also going to struggle to maintain that much property without a lot of equipment they probably don't have. Our properties that are bigger always require mowing crews as you can't expect renters to keep up with mowing that much land. And having done this for a long time, it is the rare renter that cares about the land. Renters generally want as much house as possible for as little as possible, in the right location. 

Above all, a rental should become a rental because it makes financial sense as a rental, not because it just happens to be a house. If your reasoning is that you can just use that as a rental while you buy something else (which makes me wonder about your reasoning regarding down payments and closing costs, you're going to have those on the new home you buy), that's not a good reason to turn something into a rental. 

To me, it sounds like you'd be better off buying something closer to town that's more suitable for a rental. 

I'm pretty sure someone would rent it at a price they're willing to pay.  You're challenge will be finding someone reliable who will pay the rent on time and not cause problems or hassles for you.  Maybe spend some time first reading in the Landlord forum here.  It's free and you'll see what problems other people are facing and how they solve them, which will help you decide whether or not to move forward with your plan.

It's possible to find a reliable person who would be super happy to have your rural set-up and not have to have a down payment to buy it.  However, it's also possible you'll be mislead and get a tenant who is challenging for you since you're not experienced.

If I was in your position and I wanted to rent this place while living in another, I would consider living in another manufactured home on the same two acres.  Some counties in Indiana would refer to this as an Accessory Dwelling Unit.  Then you could keep an eye on the larger house you're renting out - or vice-versa.  Under this idea, you'd need to see if the Health dept has any restrictions for your septic system (which i assume you have) and if the power company would meter the 2nd unit separately.  You might need a 2nd well if you're not on city water.  If you're on city water, they may or may not install another meter.  I might also consider if i could turn the garage into a rental, or into an apartment for me, while renting the other place so that I'd still be on the property at least until I gained confidence in the tenant.

@Dana Wilkie your plan has some merit. Few things to consider, if you decide to move to a new home, would you not need down payment for that? 

Regarding renting your existing home, you have to look at it as a business. You will have income (rent), but then you'll have expenses: taxes, insurance, repairs, turnaround cleanup, eviction/attorney costs, vacancy factor etc. Would your rental income cover all of that, and if not would you have reserves on hand to handle that?

To get a figure on how much you can rent your home for, I think BiggerPockets will allow few rental analyze deal searches. In addition, you can use apartments.com and zillow.com to research rents for comparable homes in your area.