being a landlord seems awfully risky !....

[Doug]

In my complex ( I'm trying to sell my unit for the last 222 days).

A unit just went up for rent. I'd estimate the value at $200,000 for a sale.

The rent being asked is 1200 a month. This is a one BR/ 1.5 bath 888 sf townhouse. I have a 2 BR/ 2.5 bath unit i"m trying to get 240k for.

So that's $14,400 annually but the owner has to pay nearly 3k a year in property taxes and about 2k in association fees, that only leaves the place making $9400 a year on 200k. That doesn't allow anything for insurance, special assessments, repairs and maintenance, vacant times between tenants, getting a non paying tenant evicted, etc.

Why buy it when you can rent for this price ? That's not even 5% on your money without any allowances for stuff like repairs.

[Cap dat 4ss]

Yep... It just takes one bad set of renters to destroy the value of the property and any equity you had built up. GL selling it

[Dutch]

Only slumlords who own multiple unit buildings, 4plexes etc., make any money.

[Doug]

Yep... It just takes one bad set of renters to destroy the value of the property and any equity you had built up. GL selling it

I sure don't want to rent out my unit at perhaps $1600 a month ( 2 BR). I was briefly a landlord for a few years where I got a much higher ROI than is presented here. I know the girl that is moving out of this unit ( she was a potential buyer for my unit, but we couldn't close about a 10k gap), she's moving back to NYC.

This $1200 rent makes no sense to me. These condos were built in 1986. As owner you could easily get hit with a 5k bill for a new heating system at any time, or a water heater, fridge, stove, etc.

Buying these units and renting them out ( if you had many millions) looks like a loser to me !

I think renting it at $1200 a month is the right move even if you can afford to buy it outright for cash...at least for awhile !

I don't get what the owner of unit F-7 sees in renting it at $1200 ( approx market value).

I'd list it for sale before renting it.

I have been inside this condo. It is ordinary and original with laminate countertops ans 1986 cabinets and carpet, not hardwood floors.

My 200k sale might be high, but 170-180k should sell fast enough. I think it would sell within a week or two at 175k.

Mine would sell real quick at 215k. I've turned down 220k.

[Housemoney]

I have had very few problems renting out SFR's. You couldn't talk me into investing in condo's for the reasons you stated.

[George7904]

The theory was that you try to break even with mortgage, taxes, insurance, etc; and in 10 years the price of the property will double. At that point you can sell it and make 200k in profit. Obviously, this is no longer the case; but I do know several people that made a ton of money doing this in 90's and 2000's. It is a terrible business plan at this point in time. Reasons like your scenerio are why I believe the real rstate market still has a long way to fall., especially here in So Cal.

[excel]

222 days be a man, torch it.

[sweethook]

lot of money to be giving away

[VegasInsider]

Best way to make money in real estate is buying a house for a decent value around a college campus. Once a year, you'll advertise it and do very extensive background checks to make sure you're not renting to some partiers or coke dealers. Rent being paid each month should be enough to pay the note on the house plus insurance. Let other people pay for your house.

[marcoloco]

no risk no reward

[Jonah]

Definite risk involved. Sadly, there are soooooooooo many low-lifes out there. Become a landlord and you shall see.

[Housemoney]

Best way to make money in real estate is buying a house for a decent value around a college campus. Once a year, you'll advertise it and do very extensive background checks to make sure you're not renting to some partiers or coke dealers. Rent being paid each month should be enough to pay the note on the house plus insurance. Let other people pay for your house.

And still get a parent to co-sign. Junior doesn't have a pot to piss in. The parents won't get involved until later in life when they try to help junior fix his credit. If a parent co-signs, you get a check if junior bails on you. PS 99% of college students are partiers. Don't buy anything nice.

[Doug]

well this $1200 rental fee on a 180-200k condo doesn't work for me if I were the owner of that unit.....just sell it, IMO.

Now if you're getting $1200 rent on a property worth 100-120k, it becomes a lot more doable....

[Bill Dozer]

I don't know how it is across the nation but it seems like anyone with a condo is getting hit the hardest. People can't afford those dues and put them for rent and then all the renters drives the value down. After the winter in the northeast everyone is scared of having to foot the repair bills.

[lolguy999]

You're a smart man Doug, do what you have to do
Rent of 1200$ IMO u shouldn't have too many problems will non-payers if u do your background checks successfully. Also for a place so big and rent so high i think agreements should be signed prior to new tenant moving in that any unrelated problems caused by the tenant will be paid by the tenant. It's not some 1 BR 1 Bath place inside a small apartment complex, but say annual income is 7k after subtracting all of the other fees it is still 580$ of net profit per month. Say you work on the house even 10 hours per month (showing, collecting) it is still a hefty 60$s an hour if u think of it that way.

On the other hand, if ur tired of it and want to get rid of it asap (sell) try advertising it on multiple sites a little more. 200,000$ houses are quite popular for the every day jane and joe


Peace

[freeVICK]

i manage a small complex for my grandma, one of the tenants hasnt paid rent for 5 months straight... plus she is one of those that will call me for every little fuking thing. worse yet, my grandma wont allow me to chuck her because they are like best friends

[OmgUrMom]

i agree not worth the potential headaches for such a small return

[cankid]

the whole atmosphere out there sucks

[Cap dat 4ss]

Doug, are you showing your place much? Is it listed with a Realtor? Getting offers?

[Doug]

[QUOTE=lolguy999;9494779]You're a smart man Doug, do what you have to do
Rent of 1200$ IMO u shouldn't have too many problems will non-payers if u do your background checks successfully. Also for a place so big and rent so high i think agreements should be signed prior to new tenant moving in that any unrelated problems caused by the tenant will be paid by the tenant. It's not some 1 BR 1 Bath place inside a small apartment complex, but say annual income is 7k after subtracting all of the other fees it is still 580$ of net profit per month. Say you work on the house even 10 hours per month (showing, collecting) it is still a hefty 60$s an hour if u think of it that way.

On the other hand, if ur tired of it and want to get rid of it asap (sell) try advertising it on multiple sites a little more. 200,000$ houses are quite popular for the every day jane and joe

Well I have a 2BR unit, but my point is renting it out ( instead of selling it) is not at all attractive as an option.

I want like 1% of the property value as rent, or about $2,400 on my condo....that ain't gonna happen, $1600 is more like it.

Now a 4 plex in a college town might produce my desired rent to value ratio, but not for me.....