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

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May 15, 2019
1:58:59pm

kotacoug All-American

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

Than what you bought it for or renting it out for 70% od the mortgage is the hard part. Just something to think about.

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kotacoug

Bio page: kotacoug
Joined: Jul 20, 2002
Last login: Apr 26, 2024
Total posts: 80,478 (4,682 FO)

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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

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.

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.

Dr MoBYU

5/15/19 8:51pm

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