All Forum Posts by: Heather Hines

Nathan, thanks for the reply.  The other fact that I forgot to mention is the lack of other things to do with our money.  We already have quite a bit just sitting there.  Some we have put into stocks, but we are really at a loss at how to invest the rest.  It seems a bit of a shame to just let it sit there...  thoughts?

Good morning,

My husband and I recently purchased a new home a few miles away from our current home.  We are deciding whether to sell our property or to turn it into a rental.  Input from savvy long time investors would be much appreciated!  Here are a few of the salient facts:  

1. Home purchased in 2009 for $145k with $10k put into the house for repairs.  House was rented out and 10k was recaptured after three years.

2. 2012 I moved into the home and put an additional $40k towards renovations. I also refinanced the house to get rid of PMI and 3.125% interest rate.

3. Palmdale, CA market is "hot" right now and our realtor estimates the sale between 301-312k.  Not to mention the property gains tax we will avoid if we sell now.

4. 5 miles away is Northrop Grumman.  My friend who is in upper level management there estimated hiring to ramp up over the next two years  with 3,000-5,000 new good paying jobs.

5. Rental wise, the house will rent out for approximately $1825-$1875.  Our 15 year loan is $1305/month and expires in 2027.  

Additionally, we can also hold now and sell in two years to avoid the tax.  However, this is a gamble and we have put some nice upgrades on the house that might have to be redone before selling again.  

* New ceramic tile throughout downstairs, front and back landscaping, interior paint, granite countertops, new HVAC, new blinds, built in entertainment center.

Fernando,

I am not sure if you have cleared this up, but property managers really don't help with evictions. You need a good eviction lawyer.  I use Steven Derryberry who is located on Lancaster BLVD.  He is experienced and also handles other legal aspects of real estate.  Hope this helps!

Additionally, I used to use property managers, but they don't accomplish much more than collecting rents. Might I suggest you create a property investment business (with the help of a lawyer), open up a PO Box, and have your tennants remit payment there?  I'm not sure how many properties you have.  If you just have one or two, then you should probably stick with hiring it out.