All Forum Posts by: Digger Odell

How was that "income of 3X rental" figure arrived at and do most of you hold to that figure for your rentals?

Also, for renting out a room in a home do you follow that same concept of 3X?

Thanks for that vote of confidence, Ashley.

You're the second person to suggest a property management company and I'm wondering why you feel I should use one over handling things myself. It's just the one rental (for now).

Also, can you or anyone give me some idea of how/what they charge for a single rental and what I can expect to get for that. 

Thanks, again.

Meant to type "two elementary schools" "keep the house occupied" ...urg... I do not have dyslexia it only seems that way. Why is there no way to edit these after they are posted?

Appreciate the replies. The emotional attachment is there to some extent. I cannot deny that. However, from reading the article it makes the point that getting a home ready for rental and getting it ready for sale are not one and the same. As I pointed out, there are several houses for sale right now on my street within spitting distance of mine. More if you go down any one of several side streets. It is a buyers market for sure and these are all nice homes. Older, like mine... late 1940's and even earlier... but well built and in easy walking distance of the high school, middle school and elementary two schools, one being Catholic.

The attachment aside, doing a rental now would (potentially) let me 1) create a positive cash situation with minimal investment 2) keep the occupied and house off the market at a time there is way too much competition 3) perhaps allow the market to come up a bit before getting it ready to sell.

I'm closing on my new home at the end of this month. My original "plan" was to sell my current home, my boyhood home as it turns out, in the Spring after getting it ready. Being on this site, reading "How to Rent Your Home" by Jason Turner and listening to some of the podcasts has got me to thinking of renting it out for the time being. In the hopes the market will heat up in a few years and, perhaps, get me a better price than what I can get now. There are also four other homes on my street for sale in easy walking distance so a small "glut" has developed.

I paid cash for the new place figuring I'd recoup much, if not all, of the money selling my current house so that is one issue I have with doing a rental. The loss of interest on that investment. However, being parked in a mutual bond fund will still only get me around $500/month return. Rentals, in my area for my size house, are going for around $1500 to $1700. Clearly there is a difference.

Maybe I'm answering my own question but still would like to get some feedback on what others with more experience would do in a similar situation.

Hello to all. Hope someone with insurance expertise can provide some advice...

I'm closing up my office after 20 years, downsizing my business, and selling my home (in the Spring). I will close on a place soon that was once commercial but converted years ago to residential.  Have already spoken to the zoning office and they are fine with my plans as long as no sign and nothing visible from the street.

So here's the deal. I have a full business insurance policy for both contents (cost to replace) and complete liability plus another for workman's comp for freelancers I may hire on a one days basis. That work being done away from the home.

I still need to purchase a home owners policy. The business policy agent will not combine the two saying I need a separate policy. That's fine I can live with that. My problem has to do with the square footage issue. The town assessor has it as well just south of 4000 square feet but this is incorrect. Livable (heated) space is around 2450 square feet. The rest being unheated storage, garage/workshop, loading dock (yep, that's right) and an open-on-the-end car port. The agents I have contacted say they must take what the town states so the premium is quite high. They are quoting me to insure/replace a house costing close to $400K when I am paying less than half that for the place. Have not even discussed the second policy with them as yet.

The town is undergoing a reevaluation right now, this month and I plan to ask for a hearing on the footage issue as well as the current assessment, which is way high also. Should I wait to insure and take these results back to the agents? That means no home owners insurance coverage for perhaps a month or more? Will this likely change things or will they go back to that old size?

There is also the issue of coverage within the home. I plan to use around 500 square feet for the office about of the 2540 total size. Would each policy be based on their respective sizes or will they likely overlap? 

Appreciate the help on this.

Trevor:

I had come to a similar conclusion after I asked the question. Best to leave the IRA alone if I have the $$ in my regular account, which I do.

Thanks to both of you for taking the time to respond.

Much appreciated : )

I'm over 60 years old and in the process of purchasing a second home. I am paying cash and expect to close end of October. I will be withdrawing the money (around 225K) from my mutual funds. Probably from a high yield bond fund I have had for many years. In the spring, I hope to sell my first home and replace most of this money in my mutual fund.

So here is my question. I have enough money in my IRA mutual fund to cover this purchase as well as in my regular account. Since I am over 59 and a half does it make financial sense to take the money from my IRA or should I leave that alone and take it from my regular account?

Appreciate any help and advice anyone can provide.

The issue is them holding me, the buyer, up from moving in. If I have told my current landlord I'm leaving end of the month in two months and he rents my place that puts me on the street.

How can I make sure in writing this cannot happen is my question. 

Working on purchase a home for myself. Going back and forth on setting a potential closing date. Sellers wants to move it back several weeks to find a new home to move to.

Question: Once we agree on a closing date and it is in the buyers contract is there any penalty imposed if the seller comes back and says they need more time to get out for what ever reason?