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(former)FormerSanDiegan
Participant[quote=clairemontian]Appreciate the responses. Given our loan amount, a conservative rent value, hoa fees, prop management companyvfee, and taxes, we would come out ahead about $50 a month.
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Your $50 will likely get eaten by repairs. (I have a 2 BR rental house I’ve owned 7 years and we have averaged about $1200 per year in repairs, new appliances, etc)
Also, in your analysis, how did you account for the principal portion of your payment ?
If you have $50 after taxes, including principal portion of payment as part of the expenses, then you are in good shape renting it out. You’ll essentially lock in future cash flow (I’m in the camp that anticipates inflation kicking in within the next 3 years) for reasonably minor out-of-pocket expenses.Also, I would contact the listing agent for the short sale unit about potentially selling your unit and using them. They might give you the scoop on how much the short-sale unit will go for.
If you can rent it out and get the cash flow you describe, then I suspect you can sell it and still walk away with some cash. If not, I would sharpen your pencil on your analysis. Why not put it on the market and see ? Then rent it out if it doesn’t sell.
Participant… But here’s a stab:
Rents for 2BR/2Ba apartments in Clairemont can be between 1100 to 1400.
If you owe less than 180K at 6% or less (or owe less than 200K can refinance these days at rates around 5%), then you can start making a case for renting it out if you can get 1300 – 1400 in rent. You will be reasonably cash flow neutral at that point, accounting for tax benefits and principal paydown. BUt will have out-of-pocket expenses if you use a management company and for any repairs.
But again, this in only a guess without the actual numbers.
If you can rent these out at 1300-1400 and purchase for under 200K, it might start making sense for self-managed investors as long as investor owned rates are in the 6% or less range.
Participant… But here’s a stab:
Rents for 2BR/2Ba apartments in Clairemont can be between 1100 to 1400.
If you owe less than 180K at 6% or less (or owe less than 200K can refinance these days at rates around 5%), then you can start making a case for renting it out if you can get 1300 – 1400 in rent. You will be reasonably cash flow neutral at that point, accounting for tax benefits and principal paydown. BUt will have out-of-pocket expenses if you use a management company and for any repairs.
But again, this in only a guess without the actual numbers.
If you can rent these out at 1300-1400 and purchase for under 200K, it might start making sense for self-managed investors as long as investor owned rates are in the 6% or less range.
Participant… But here’s a stab:
Rents for 2BR/2Ba apartments in Clairemont can be between 1100 to 1400.
If you owe less than 180K at 6% or less (or owe less than 200K can refinance these days at rates around 5%), then you can start making a case for renting it out if you can get 1300 – 1400 in rent. You will be reasonably cash flow neutral at that point, accounting for tax benefits and principal paydown. BUt will have out-of-pocket expenses if you use a management company and for any repairs.
But again, this in only a guess without the actual numbers.
If you can rent these out at 1300-1400 and purchase for under 200K, it might start making sense for self-managed investors as long as investor owned rates are in the 6% or less range.
Participant… But here’s a stab:
Rents for 2BR/2Ba apartments in Clairemont can be between 1100 to 1400.
If you owe less than 180K at 6% or less (or owe less than 200K can refinance these days at rates around 5%), then you can start making a case for renting it out if you can get 1300 – 1400 in rent. You will be reasonably cash flow neutral at that point, accounting for tax benefits and principal paydown. BUt will have out-of-pocket expenses if you use a management company and for any repairs.
But again, this in only a guess without the actual numbers.
If you can rent these out at 1300-1400 and purchase for under 200K, it might start making sense for self-managed investors as long as investor owned rates are in the 6% or less range.
Participant… But here’s a stab:
Rents for 2BR/2Ba apartments in Clairemont can be between 1100 to 1400.
If you owe less than 180K at 6% or less (or owe less than 200K can refinance these days at rates around 5%), then you can start making a case for renting it out if you can get 1300 – 1400 in rent. You will be reasonably cash flow neutral at that point, accounting for tax benefits and principal paydown. BUt will have out-of-pocket expenses if you use a management company and for any repairs.
But again, this in only a guess without the actual numbers.
If you can rent these out at 1300-1400 and purchase for under 200K, it might start making sense for self-managed investors as long as investor owned rates are in the 6% or less range.
ParticipantI don’t think we can offer a complete opinion without additional details as DWCAP suggested.
1. How much do these units rent for ?
2. How much do you owe ?
3. WHat is the interest rate on your loan ?
4. WHat are the HOA fees ?ParticipantI don’t think we can offer a complete opinion without additional details as DWCAP suggested.
1. How much do these units rent for ?
2. How much do you owe ?
3. WHat is the interest rate on your loan ?
4. WHat are the HOA fees ?ParticipantI don’t think we can offer a complete opinion without additional details as DWCAP suggested.
1. How much do these units rent for ?
2. How much do you owe ?
3. WHat is the interest rate on your loan ?
4. WHat are the HOA fees ?ParticipantI don’t think we can offer a complete opinion without additional details as DWCAP suggested.
1. How much do these units rent for ?
2. How much do you owe ?
3. WHat is the interest rate on your loan ?
4. WHat are the HOA fees ?ParticipantI don’t think we can offer a complete opinion without additional details as DWCAP suggested.
1. How much do these units rent for ?
2. How much do you owe ?
3. WHat is the interest rate on your loan ?
4. WHat are the HOA fees ?Participant[quote=pepsi]
I think it is more like $9500, because you need to deduct the standard deduction:
(720K * 0.6 – STD ) * 0.34[/quote]
Wrong. Though your point might be correct for those in lower income ranges (e.g. 100K and less),
the truth is that for most people in the 200K + tax bracket that they pay enough in state income tax and property tax alone to exceed the standard deduction.Participant[quote=pepsi]
I think it is more like $9500, because you need to deduct the standard deduction:
(720K * 0.6 – STD ) * 0.34[/quote]
Wrong. Though your point might be correct for those in lower income ranges (e.g. 100K and less),
the truth is that for most people in the 200K + tax bracket that they pay enough in state income tax and property tax alone to exceed the standard deduction.Participant[quote=pepsi]
I think it is more like $9500, because you need to deduct the standard deduction:
(720K * 0.6 – STD ) * 0.34[/quote]
Wrong. Though your point might be correct for those in lower income ranges (e.g. 100K and less),
the truth is that for most people in the 200K + tax bracket that they pay enough in state income tax and property tax alone to exceed the standard deduction. -
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