You also have to have the ability to pay a mortgage with no rent for a

May 15, 2019
1:24:43pm

crack All-American

long time (if they file bankruptcy) and the mental wherewithal to throw someone out of your house when they have nowhere else to live.

This message has been modified

Originally posted on May 15, 2019 at 1:24:43pm

Message modified by crack on May 15, 2019 at 1:26:02pm

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crack

Bio page: crack
Joined: Nov 17, 2005
Last login: May 1, 2024
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Messages

Author

Time

Advice? Looking at buying a house in AZ. Keeping it for a rental...

Dr MoBYU

5/15/19 12:39pm

Where is the house?

JOPE

5/15/19 12:41pm

Where; and age of the home and interior upgrades. I've seen that square footage go for as low

scall

5/15/19 12:54pm

It’s 3 years old in the gilbert/Mesa region.

Dr MoBYU

5/15/19 12:59pm

Holy crap, I had no idea Mesa/Gilbert had gotten that expensive

Windward_Coug

5/15/19 1:02pm

Yeah the newer large homes definitely go for around that. I think the number is on the very high side of the

scall

5/15/19 1:06pm

More just thinking about if becoming a landlord is a good idea.

Dr MoBYU

5/15/19 1:01pm

You have to have 1 of 2 things to be a good landlord- the willingness to pay a property management company to handle

scall

5/15/19 1:06pm

You also have to have the ability to pay a mortgage with no rent for a

crack

5/15/19 1:24pm

Rentals are great-under certain conditions. Are you going to stay in AZ?

grandpacoug

5/15/19 1:27pm

Definitely no need for a realtor. Can you make the numbers work if you were

cracka

5/15/19 12:46pm

I think so. We can rent it for about the mortgage.

Dr MoBYU

5/15/19 1:02pm

rent same as mortgage = you will lose a lot of money, at least near term

JackStack

5/15/19 1:07pm

Yup. Need to be able to rent it for at LEAST 0.85% of purchase.

molodyets

5/15/19 1:17pm

0.85 Of purchase price, not of mortgage, right? Bc we’d be putting 20% down.

Dr MoBYU

5/15/19 2:12pm

Yes, of purchase.

molodyets

5/15/19 4:54pm

Also in a house that like when you have tenant turnover it will be hard to

molodyets

5/15/19 4:55pm

You may be too nice to be a landlord. It needs to be run as a business.

grandpacoug

5/15/19 1:34pm

And build in cost to repair damage done by renters.

CoogsWin

5/15/19 2:17pm

Any concern about getting upside down in a house you don’t

kotacoug

5/15/19 1:14pm

this sounds like it is at the top and of the chart. I always have

grandpacoug

5/15/19 1:23pm

We can afford it. But I agree this is an insane market right now.

Dr MoBYU

5/15/19 1:53pm

Affording it is the easy part. Dumping it when it’s worth $75k less

kotacoug

5/15/19 1:58pm

Agree. Hey thanks guys for your thoughts.

Dr MoBYU

5/15/19 2:00pm

Why would you buy it if you think the market has insane prices right now?

molodyets

5/15/19 2:08pm

We need to stay in the house or move. He wants to sell. We are renting it.

Dr MoBYU

5/15/19 2:13pm

So you're considering buying it for yourself. If that price works then buy it

molodyets

5/15/19 4:53pm

If you think you're getting a good deal then buy it. If not, don't.

Ned Schneebly

5/15/19 2:18pm

I would be concerned about what kind of tenants you could get in the future.

orrin7

5/15/19 2:25pm

I have owned real estate for over 40 years. This is one of the first times that

grandpacoug

5/15/19 4:04pm

It is a tough spot.

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