Hi,
Im new to my location, and im considering buying my first property. Obviously, home ownership is always a sound financial move, BUT the problem is that I dont intend on living here long. Theres a high chance that in a few years I might not even reside in the country.

Anyways, for short-term occupancy the closing costs, property taxes, maintenance, and etc offset any benefit of ownership. Then I considered just renting out the place if I decide to move on...

So the question is whether anyone has advice on landlording single properties. Headaches? potential problems? etc?

 

scot in 3....2.......1.......

 

I'd suggest you figure out your monthly expense (mortage + tax + maintenance, etc.) first. Then, see if the market rent makes sense for your property. Property prices (not necessarily value) have gone through the roof in the past few years. In many situations, you'd lose a lot of money if you rent the place out.

 

while that may be true, you'd be gaining equity at the same time so...

But rising home prices have slowed down as of late in most areas, and in some areas they are even declining (las vegas, etc.)

As far as renting the place out, you should definately eat the 10% per month and hire a reputable property management company to handle things for you.

 

:knock::knock: Scot AKA Louie Kritski

 

Depends on your personality and how many people you know that can possible rent your house. If you do it yourself be prepaired for headaches, however it's all a tossup that depends on the condition of you house and the renters you have. There might be tax advatages to renting it out yourself compaired to getting a property manager , however you have to ask your tax person. I have a manager because they find great clients and the extra I pay is worth peace of mind, but not all managers are the same. If you plan on going down that road, ask around before you pick one.

Sam

 

Ahhh but look at the insane appreciation rate that Vegas has had for the past few years (30-40-50%). You knew it couldn't last.

Vegas is the expection, not the rule.

Regardless of whether house prices are rising or falling you need to see how much the house could be rented for and see if you would be happy with whatever positive or negative cash flow it would generate.

Keep in mind that renters will never maintain the house as well as an owner so be sure to figure in new carpet, paint, & whatever in your figures.

 

anything special that i should take into consideration.. like complicated paperwork, special tax situations, or anything like that?

i dont know whether its really a messy thing to undertake

as far as prices, i think i could rent it out at the MINIMUM the price of the mortgage, which would just add towards my equity

 

THINK?

For $125 (the price in my area) you can get a rent & market study done by the appraiser at the time of the purchase appraisal. It will give you hard facts about the current market.

Best $125 you can spend.

 

Scot will be here shortly. He will explain the blueteeth and the section 8s.