| Thinking about buying a house.. need some input |
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Diverwannabe
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| Thinking about buying a house.. need some input |
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I am currently in the military, and I am thinking about buying a house at my current duty station. I only have about a year left until I transfer. I am single with no debt and approved for 150k. My ultimate goal is to rent the house out to help pay for, and build up equity. Any tips would be greatly appreciated.
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Sun Jan 15, 2006 4:05 pm |
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Diverwannabe
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What about rental agencies that actively manage properties for a % of the tenants monthly rent? Or is this not a good way to go?
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Mon Jan 16, 2006 12:24 am |
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coaster
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If you can still cover mortgage payments, taxes, insurance, and other expenses net of the management fee and the loss of one month's rent per year, then I'd say go for it. But frankly, I think this is going to be hard to do unless the rental market in your location is tighter than average. Most places there's an overcapacity of rental units. Be sure you do your research before you commit.
The reason I included one month's rent in your costs is because there are two things many first-time landlords forget to factor into their breakeven point: vacancies and repairs. And I don't know if that's even enough. I had a friend who was a landlord and hearing his tales of lost revenue and repair expenses due to deadbeat tenants just made me cringe.
The single most crucial factor in making rental property a money-making investment for "ordinary people" is the ability to "do it yourself." All the piddly little repairs that renters can't or won't do themselves are going to be a serious drain if you have to hire them out.
Good luck!!
~Tim~
Eye Candy : Why Whimsy
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Tue Jan 17, 2006 1:41 pm |
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Stoney
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Location: Chicago, IL
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| buy some good insurance |
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I am former military myself and would warn that military transients arent always the most considerate of people. If you decide to do it, just be careful of your tenants!
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Wed Jan 18, 2006 10:44 am |
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