Real estate/Financial? Anyone in the know?

[cornerspeed92]

Originally Posted by Lafourche1

I have some experience with this situation. I moved in with her and rented my two other homes. These were both a bit higher end rentals that worked due to locations next to hospitals (medical professionals renting while they planned their next move).

Questions to answer:
How much of tax break do you get for property taxes and interest? Will you be looking for a faster tax advantage with depreciation (I don't recommend this personally but your tax professional may see it differently).

Bank the tax refund monies. You can expect a major repair every two years (HVAC), roof, plumbing, garage door issues. These are deductible depending on how you are setup tax wise but, are cash money out of pocket at the time of repair (how is your roof?).

After 8 years as a landlord, the return will be recognized at the time of sale. This is making the assumptions that your rent covered payment, insurance, property tax AND your tax refunds covered the repairs needed on the properties. Over X years time, given all the math works out, you have reduced the principal by X years payments and can now pocket that additional cash. You can end up with a larger chunk in your pocket that you really didn't have to come out of pocket to realize.

Find a good TAX Person. Talk this out. Renting is risky. You may have expenses you did not expect (busted hot water heater in ceiling - yes we put hot water heaters in the attic here - stupid place).

Great info thanks. I just had the roof put on, and a new air conditioner 2 years ago.

Originally Posted by arod55

I have been a landlord for a very long time, over thirty years. As a landlord you have to really screen your perspective tenants. That includes credit report, previous landlords and as long as you give a tenant 24 hour notice you can certainly check on your property. When you use a property manager you even have to check on them. A lot of property managers collect the rent check and do nothing else. I make it a habit to check on my properties at least twice a year. Like other people stated the only time you hear from them when there is a problem. Remember it your investment and do not ignore problems when they arise. Here in California when a tenant is late on the rent you must give them a three day notice to pay rent or quit. If you don"t do that the eviction process becomes more difficult if you have to go to court. Yes it does require work but eventually you acquire equity in your investment.

Glad to know that too, thanks

[Camaro_QC]

COVID didn't even exist last time this thread was active...!

[chevy409]

I was in a pretty similar spot a couple years back, moved in with my girlfriend, she had the nicer place, so it made sense, but it was weird not having my own space anymore. I ended up selling my house, and we bought a smaller place together that we both felt good about, even though we only planned to stay for 5 years. It helped a lot with that “this is ours” feeling and made the future planning way less complicated. I get the hesitation with renting too, I couldn’t handle having strangers in my old place either. If you’re already thinking about moving in a few years, buying something together could be a good middle ground.

[Mr_Draco]

Originally Posted by chevy409

I was in a pretty similar spot a couple years back, moved in with my girlfriend, she had the nicer place, so it made sense, but it was weird not having my own space anymore. I ended up selling my house, and we bought a smaller place together that we both felt good about, even though we only planned to stay for 5 years. It helped a lot with that “this is ours” feeling and made the future planning way less complicated. I get the hesitation with renting too, I couldn’t handle having strangers in my old place either. If you’re already thinking about moving in a few years, buying something together could be a good middle ground.

Before replying, look at the date. This thread is 8 years.

[ariZona28]

I wonder how this all played out.

[DirtyDirt]

i was thinking the same thing. OP hasnt been on since September of 23

[Sir Nuke]

Originally Posted by ariZona28

I wonder how this all played out.

I am thinking or at least hoping they came to their sences and never moved to California!! lol

[pyroguy]

Originally Posted by Sir Nuke

I am thinking or at least hoping they came to their sences and never moved to California!! lol

AMEN TO THAT!!! Especially after the whole COVID, plastic straw, people pooping in the streets, cities going bankrupt, illegal alien invasion, wait where was I going again? Oh yeah, California is CRAZY!! Move out of not into California.

I cannot stress it enough, don't combine finances with someone you're not married to, don't buy a house with someone you're not married to, and don't be a long distance landlord. You're asking for trouble with all three of these scenarios.