All Forum Posts by: Donna Peters

See first post for the history.  Update and new plan - we got a GREAT renter and its been rented for $850/mo for 6 months.  We never took a loan out on it.  Now, the renter has to move out of state and needs to break the 1 yr. lease.

We're thinking of selling.  Prices have continued to rise and we think we can get $105,000 or more.  The idea is that we could turn 1 house into 3 houses - 2 new rentals with mortgages, and a flip house bought with cash.

I'm hoping that selling at full market value will keep it an owner occupant property.  I've learned that it's stressful for me to be in charge day to day of a rental, even with a great renter.  In 6 mo., we had an $1100 hvac bill, a bed bug scare (false alarm), and a small leak.  I think I'd prefer to use a property management co. and that my rentals (and renters) not be visible from my home.

We could take a slower route with no up front financing - pay cash for a house, get it ready to rent, get a mortgage on it, buy another house, etc.  But the prices here are going up so fast that the inventory of ugly, dirty houses for $60,000 are dwindling.  I'd appreciate any advise.

@Gregory Hiban How do you handle the money?  Do you sign the lease, and wait for the money til the lease start date prior to move-in, or do you require the deposit and/or 1st mo. rent at the lease signing?

Thank you all!  We are going to lease it and refinance.  Meeting with an attorney today (second try).  I'm hoping to have an established relationship with a specialist so I have ready help if needed.  Still really nervous about finding a great renter.  Considering making a quick flyer to pass out to our neighbors to get leads before publicly listing.  Any downsides to that?

Would you lease it or sell it?

We bought an amazing house in a lovely neighborhood last year, mostly owner-occupied.  We soon discovered the small rental kitty-corner from us had a drug issue.  Shortly, the opportunity literally fell in our lap and we bought it with cash.  We've fixed it up nicely (our own labor) and now it's ready to rent.  I'm procrastinating on pulling the trigger and I'm not sure why.  The financials are tempting both ways. We had decided to lease it because we expect housing values to appreciate significantly in this area over the next decade, and we thought it would be smart to maintain control of the house across the street if it's going to continue to be a rental. 

Details:

Paid $33,000 cash + $6,000 for repairs/new deck/cosmetics 

Rent would be $800/mo.

Value appears to be around $85,000 if selling now

We have very little cash left and our plan has always been to buy houses to rent and/or flip.  We would like to buy more houses now.

Any advise would be appreciated.