- This topic has 86 replies, 16 voices, and was last updated 16 years, 7 months ago by
waterboy.
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August 9, 2007 at 2:57 PM #72536August 9, 2007 at 3:01 PM #72421
sdrealtor
ParticipantIs that what you would do Matt? Safe to say, its easier to say than to do.
August 9, 2007 at 3:01 PM #72538ParticipantIs that what you would do Matt? Safe to say, its easier to say than to do.
August 9, 2007 at 3:01 PM #72548ParticipantIs that what you would do Matt? Safe to say, its easier to say than to do.
August 9, 2007 at 3:35 PM #72467waiting hawk
Participant“Sell it now. It will probably be 20 years before you can get what you are asking again.”
Jim Cramer Booyah there.
August 9, 2007 at 3:35 PM #72585Participant“Sell it now. It will probably be 20 years before you can get what you are asking again.”
Jim Cramer Booyah there.
August 9, 2007 at 3:35 PM #72594Participant“Sell it now. It will probably be 20 years before you can get what you are asking again.”
Jim Cramer Booyah there.
August 9, 2007 at 3:50 PM #72485(former)FormerSanDiegan
ParticipantI would at least consider running the numbers on renting it.
How hefty could the property tax be ? 4K ?
If that amount of money causes a problem for you then you are not a good candidate to be a landlord.However, depending on your local market, it might be that only the best condition homes will sell. There are likely few buyers for POS estate sales. If there is no market for selling it, I would consider renting it out.
If you get 1200 per month, that might equate to 900 or so after expenses. You would need about 215K in cash at 5% to pay you that much. If you cut the price to much below 250K you probably would be about break-even in this comparison. Plus, depending on your tax circumstances you might get an additional take break for paper losses due to depreciation. Run the numbers carefully, then make a decision.
August 9, 2007 at 3:50 PM #72602ParticipantI would at least consider running the numbers on renting it.
How hefty could the property tax be ? 4K ?
If that amount of money causes a problem for you then you are not a good candidate to be a landlord.However, depending on your local market, it might be that only the best condition homes will sell. There are likely few buyers for POS estate sales. If there is no market for selling it, I would consider renting it out.
If you get 1200 per month, that might equate to 900 or so after expenses. You would need about 215K in cash at 5% to pay you that much. If you cut the price to much below 250K you probably would be about break-even in this comparison. Plus, depending on your tax circumstances you might get an additional take break for paper losses due to depreciation. Run the numbers carefully, then make a decision.
August 9, 2007 at 3:50 PM #72610ParticipantI would at least consider running the numbers on renting it.
How hefty could the property tax be ? 4K ?
If that amount of money causes a problem for you then you are not a good candidate to be a landlord.However, depending on your local market, it might be that only the best condition homes will sell. There are likely few buyers for POS estate sales. If there is no market for selling it, I would consider renting it out.
If you get 1200 per month, that might equate to 900 or so after expenses. You would need about 215K in cash at 5% to pay you that much. If you cut the price to much below 250K you probably would be about break-even in this comparison. Plus, depending on your tax circumstances you might get an additional take break for paper losses due to depreciation. Run the numbers carefully, then make a decision.
August 9, 2007 at 3:51 PM #72489ParticipantOh, and one more thing. If your agent is not helpful, then fire them.
August 9, 2007 at 3:51 PM #72604ParticipantOh, and one more thing. If your agent is not helpful, then fire them.
August 9, 2007 at 3:51 PM #72614ParticipantOh, and one more thing. If your agent is not helpful, then fire them.
August 9, 2007 at 4:30 PM #72495surveyor
Participantantioch
If you sell, maybe you can offer seller financing for those who are unable to get traditional financing. Or you could also offer rent-to-own conditions.
Not ideal, and certainly risky I admit.
I ran some numbers that involved you re-leveraging the property and using it as a rental. Assuming you invested the leverage into cash flow out of state properties, I had about a $1000/mo. cash flow. It’s difficult to calculate the rate of return because the money you invest in is so low, resulting in rates of returns of 100%.
Still, you may not want to invest in more real estate anyways…
August 9, 2007 at 4:30 PM #72611Participantantioch
If you sell, maybe you can offer seller financing for those who are unable to get traditional financing. Or you could also offer rent-to-own conditions.
Not ideal, and certainly risky I admit.
I ran some numbers that involved you re-leveraging the property and using it as a rental. Assuming you invested the leverage into cash flow out of state properties, I had about a $1000/mo. cash flow. It’s difficult to calculate the rate of return because the money you invest in is so low, resulting in rates of returns of 100%.
Still, you may not want to invest in more real estate anyways…
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