[bearishgurl]

[quote=bearishgurl]I would also think you would have less vacancies with an SFR (all depending on where it was located, of course).[/quote]

Yes, temeculaguy, I totally agree that the rent multiplier is the bottom line when in comes to rentals. However, location is absolutely everything when it comes to the quality of tenant you will attract. It’s hard to get both (location and rent multiplier) in the same property. I believe tenants can and do sneak a large dog in a condo with a ground floor door which leads to a private, fenced patio area. Then you have the poor animal stuck in the unit or pacing the patio and scratching the fence all day while the tenant is at work as opposed to roaming a fenced backyard. Small older homes (that would compare with a condo “rent multiplier”) as a rule have more generous backyards than construction built in the 80’s and after.

Being the “control freak” that I am, though, I would have an issue with giving an Assn. nearly $3K a year, when I could put $$ that into my own property. The Assn. could also fine the owner for his/her tenant’s CC&R violations. And HOA hikes and special assessments can be unpredictable and eat into a landlord’s operating costs.

Sorry about telling jimmyle he should use a “Sched. C” to list expenses and depreciation of his (future) rental. I’m one of those folks who give my taxes to a “Hatfield” to do every year and just sign the return 😉

Since jimmyle does not yet own a principal residence for himself and desires one, I think he should figure out what kind of property he can get for himself after he uses part of his credit allotment to purchase a rental condo. This will tell him whether a rental condo purchase is feasible at this time.

[bearishgurl]

[quote=bearishgurl]I would also think you would have less vacancies with an SFR (all depending on where it was located, of course).[/quote]

Yes, temeculaguy, I totally agree that the rent multiplier is the bottom line when in comes to rentals. However, location is absolutely everything when it comes to the quality of tenant you will attract. It’s hard to get both (location and rent multiplier) in the same property. I believe tenants can and do sneak a large dog in a condo with a ground floor door which leads to a private, fenced patio area. Then you have the poor animal stuck in the unit or pacing the patio and scratching the fence all day while the tenant is at work as opposed to roaming a fenced backyard. Small older homes (that would compare with a condo “rent multiplier”) as a rule have more generous backyards than construction built in the 80’s and after.

Being the “control freak” that I am, though, I would have an issue with giving an Assn. nearly $3K a year, when I could put $$ that into my own property. The Assn. could also fine the owner for his/her tenant’s CC&R violations. And HOA hikes and special assessments can be unpredictable and eat into a landlord’s operating costs.

Sorry about telling jimmyle he should use a “Sched. C” to list expenses and depreciation of his (future) rental. I’m one of those folks who give my taxes to a “Hatfield” to do every year and just sign the return 😉

Since jimmyle does not yet own a principal residence for himself and desires one, I think he should figure out what kind of property he can get for himself after he uses part of his credit allotment to purchase a rental condo. This will tell him whether a rental condo purchase is feasible at this time.

[bearishgurl]

[quote=bearishgurl]I would also think you would have less vacancies with an SFR (all depending on where it was located, of course).[/quote]

Yes, temeculaguy, I totally agree that the rent multiplier is the bottom line when in comes to rentals. However, location is absolutely everything when it comes to the quality of tenant you will attract. It’s hard to get both (location and rent multiplier) in the same property. I believe tenants can and do sneak a large dog in a condo with a ground floor door which leads to a private, fenced patio area. Then you have the poor animal stuck in the unit or pacing the patio and scratching the fence all day while the tenant is at work as opposed to roaming a fenced backyard. Small older homes (that would compare with a condo “rent multiplier”) as a rule have more generous backyards than construction built in the 80’s and after.

Being the “control freak” that I am, though, I would have an issue with giving an Assn. nearly $3K a year, when I could put $$ that into my own property. The Assn. could also fine the owner for his/her tenant’s CC&R violations. And HOA hikes and special assessments can be unpredictable and eat into a landlord’s operating costs.

Sorry about telling jimmyle he should use a “Sched. C” to list expenses and depreciation of his (future) rental. I’m one of those folks who give my taxes to a “Hatfield” to do every year and just sign the return 😉

Since jimmyle does not yet own a principal residence for himself and desires one, I think he should figure out what kind of property he can get for himself after he uses part of his credit allotment to purchase a rental condo. This will tell him whether a rental condo purchase is feasible at this time.

[bearishgurl]

jimmyle, on your 3rd question, you will have the loan on the condo on your credit report if you buy it. Therefore, that loan will factor into your front-end and back-end load when it comes time to take a loan out for another property. The *new* property loan payment will be contingent on how much your *condo* PITI is minus a projected rental income for 9 mos. a yr. IMO, you will only be able to borrow an amt. (for your *new* principal residence) that renders a mo. pymt. minus (curr. annual PITI minus 9 mos. rent) / 12.

This is something to think about before purchasing the rental if you have an income that is not rising and also have these imminent plans to purchase a principal residence for yourself AFTER purchasing a rental.

[bearishgurl]

jimmyle, on your 3rd question, you will have the loan on the condo on your credit report if you buy it. Therefore, that loan will factor into your front-end and back-end load when it comes time to take a loan out for another property. The *new* property loan payment will be contingent on how much your *condo* PITI is minus a projected rental income for 9 mos. a yr. IMO, you will only be able to borrow an amt. (for your *new* principal residence) that renders a mo. pymt. minus (curr. annual PITI minus 9 mos. rent) / 12.

This is something to think about before purchasing the rental if you have an income that is not rising and also have these imminent plans to purchase a principal residence for yourself AFTER purchasing a rental.

[bearishgurl]

jimmyle, on your 3rd question, you will have the loan on the condo on your credit report if you buy it. Therefore, that loan will factor into your front-end and back-end load when it comes time to take a loan out for another property. The *new* property loan payment will be contingent on how much your *condo* PITI is minus a projected rental income for 9 mos. a yr. IMO, you will only be able to borrow an amt. (for your *new* principal residence) that renders a mo. pymt. minus (curr. annual PITI minus 9 mos. rent) / 12.

This is something to think about before purchasing the rental if you have an income that is not rising and also have these imminent plans to purchase a principal residence for yourself AFTER purchasing a rental.

[bearishgurl]

jimmyle, on your 3rd question, you will have the loan on the condo on your credit report if you buy it. Therefore, that loan will factor into your front-end and back-end load when it comes time to take a loan out for another property. The *new* property loan payment will be contingent on how much your *condo* PITI is minus a projected rental income for 9 mos. a yr. IMO, you will only be able to borrow an amt. (for your *new* principal residence) that renders a mo. pymt. minus (curr. annual PITI minus 9 mos. rent) / 12.

This is something to think about before purchasing the rental if you have an income that is not rising and also have these imminent plans to purchase a principal residence for yourself AFTER purchasing a rental.

[bearishgurl]

jimmyle, on your 3rd question, you will have the loan on the condo on your credit report if you buy it. Therefore, that loan will factor into your front-end and back-end load when it comes time to take a loan out for another property. The *new* property loan payment will be contingent on how much your *condo* PITI is minus a projected rental income for 9 mos. a yr. IMO, you will only be able to borrow an amt. (for your *new* principal residence) that renders a mo. pymt. minus (curr. annual PITI minus 9 mos. rent) / 12.

This is something to think about before purchasing the rental if you have an income that is not rising and also have these imminent plans to purchase a principal residence for yourself AFTER purchasing a rental.

[bearishgurl]

jimlyle, in answer to your first question, you will have to file a “Sched. C” with your tax return for the year you purchase rental property and put it into service as a rental, and all subsequent years you still own it and it is a rental. Your new rental will be classified as a “business.” You will be able to deduct the expenses on it as you would a business.

[bearishgurl]

jimlyle, in answer to your first question, you will have to file a “Sched. C” with your tax return for the year you purchase rental property and put it into service as a rental, and all subsequent years you still own it and it is a rental. Your new rental will be classified as a “business.” You will be able to deduct the expenses on it as you would a business.

[bearishgurl]

jimlyle, in answer to your first question, you will have to file a “Sched. C” with your tax return for the year you purchase rental property and put it into service as a rental, and all subsequent years you still own it and it is a rental. Your new rental will be classified as a “business.” You will be able to deduct the expenses on it as you would a business.

[bearishgurl]

jimlyle, in answer to your first question, you will have to file a “Sched. C” with your tax return for the year you purchase rental property and put it into service as a rental, and all subsequent years you still own it and it is a rental. Your new rental will be classified as a “business.” You will be able to deduct the expenses on it as you would a business.

[bearishgurl]

jimlyle, in answer to your first question, you will have to file a “Sched. C” with your tax return for the year you purchase rental property and put it into service as a rental, and all subsequent years you still own it and it is a rental. Your new rental will be classified as a “business.” You will be able to deduct the expenses on it as you would a business.

[bearishgurl]

Exc. advice Temeculaguy, but I’m concerned about the high HOA fee if there isn’t any amenities for this $$ such as pool/jacuzzi/gym.

Trash for an SFR (if you only allow the smallest – 39 gal. receptable) is about $13 mo. for weekly p/u. (wrapped into prop. tax “People’s Ordinance” in the City of SD where RB is located); water (if no lawn) can be as low as $25 mo.; fire ins. with $1000 ded. for a “replacement value” policy on a $140K condo can be as low as $32 per mo.; sewer as low as $17 mo.; Landscaping svc. as low as $60 per mo.; That adds up to $147 mo. for a 2br/1ba (most likely 1 ba) older-home rental – maybe $170-175 if there is a “postage-stamp” lawn that needs watering plus added fire ins. for an SFR. I would also be concerned here about future HOA hikes as well as special assessments.

However, I don’t see a 2 br/1ba house costing any less than $260K, if it still needs a little work in order to rent out. I really think you could count on an SFR beginning to appreciate in the next few years but not necessarily a condo.

I would also think you would have less vacancies with an SFR (all depending on where it was located, of course). Also, I’d like to add that the “People’s Ordinance” in the City of SD does NOT APPLY to condo complexes, ONLY SFR’s.

If jimmyle can’t qualify to purchase an SFR, my points are moot.

jimmyle, have you checked to make sure the condo doesn’t still have polybutylene plumbing between the walls? It’s a disaster waiting to happen (or has already exploded) and was prevalent between 1979 and 1989 build-dates. If there is some of this still left in the building, I wouldn’t touch it. That’s just me. FYI, many owners who got their class-action settlements in 1994 for faulty PTB DID NOT spend this $$ on plumbing upgrades. I wholeheartedly recommend you check into this before making an offer.

[bearishgurl]

Exc. advice Temeculaguy, but I’m concerned about the high HOA fee if there isn’t any amenities for this $$ such as pool/jacuzzi/gym.

Trash for an SFR (if you only allow the smallest – 39 gal. receptable) is about $13 mo. for weekly p/u. (wrapped into prop. tax “People’s Ordinance” in the City of SD where RB is located); water (if no lawn) can be as low as $25 mo.; fire ins. with $1000 ded. for a “replacement value” policy on a $140K condo can be as low as $32 per mo.; sewer as low as $17 mo.; Landscaping svc. as low as $60 per mo.; That adds up to $147 mo. for a 2br/1ba (most likely 1 ba) older-home rental – maybe $170-175 if there is a “postage-stamp” lawn that needs watering plus added fire ins. for an SFR. I would also be concerned here about future HOA hikes as well as special assessments.

However, I don’t see a 2 br/1ba house costing any less than $260K, if it still needs a little work in order to rent out. I really think you could count on an SFR beginning to appreciate in the next few years but not necessarily a condo.

I would also think you would have less vacancies with an SFR (all depending on where it was located, of course). Also, I’d like to add that the “People’s Ordinance” in the City of SD does NOT APPLY to condo complexes, ONLY SFR’s.

If jimmyle can’t qualify to purchase an SFR, my points are moot.

jimmyle, have you checked to make sure the condo doesn’t still have polybutylene plumbing between the walls? It’s a disaster waiting to happen (or has already exploded) and was prevalent between 1979 and 1989 build-dates. If there is some of this still left in the building, I wouldn’t touch it. That’s just me. FYI, many owners who got their class-action settlements in 1994 for faulty PTB DID NOT spend this $$ on plumbing upgrades. I wholeheartedly recommend you check into this before making an offer.

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