swamp
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THEY’RE EATING THE DOGS!!!!!!!
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Post by swamp on Oct 13, 2015 14:29:15 GMT -5
Swamp's working her way toward a Trump-sized portfolio one property at a time. But Swamp has better hair. Depends. Is it humid? No, I don't.
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GRG a/k/a goldenrulegirl
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"How you win matters." Ender, Ender's Game
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Post by GRG a/k/a goldenrulegirl on Oct 13, 2015 14:31:52 GMT -5
A girl has to do what a girl has to do...to keep folks from voting for Trump. I never threatened such a thing!!!! One can never, ever, be too sure.
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Chocolate Lover
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Post by Chocolate Lover on Oct 13, 2015 14:55:38 GMT -5
I never threatened such a thing!!!! One can never, ever, be too sure. Hmpf!
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greeniis10
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Post by greeniis10 on Oct 13, 2015 15:00:25 GMT -5
I love this board because I learn new things every day. What I NEED to do is start keeping a list of the crazy topics threads veer off to a couple pages later than from where they started. A thread started about rental property that turns into a topic about Donald Trump getting out of the shower definitely makes the list!
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CCL
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Post by CCL on Oct 13, 2015 16:01:18 GMT -5
Interesting piece of history. It's a Sears kit house. Sears used to sell houses. You order a house and you assemble it yourself. It still has the original hardwood floors, wainscoting, moldings, and built in China cabinets. It it also has new roof, furnace, windows, hot water heater,, bathroom, kitchen, and gas insert fireplace. Hmmm...even I might buy that place.
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Bonny
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Post by Bonny on Oct 13, 2015 21:45:39 GMT -5
Interesting piece of history. It's a Sears kit house. Sears used to sell houses. You order a house and you assemble it yourself. It still has the original hardwood floors, wainscoting, moldings, and built in China cabinets. It it also has new roof, furnace, windows, hot water heater,, bathroom, kitchen, and gas insert fireplace. I've heard of the Sears kit houses. Sounds cute.
$60k. Wow! What kind of rent can you get?
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Oct 13, 2015 23:00:22 GMT -5
Silly Bonny, trying to get back on topic.
I need a hair cut.
And, swamp, I have a house to sell you for $40K. Actually, anyone can buy it, not just swamp.
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swamp
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THEY’RE EATING THE DOGS!!!!!!!
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Post by swamp on Oct 14, 2015 7:19:20 GMT -5
I've heard of the Sears kit houses. Sounds cute.
$60k. Wow! What kind of rent can you get?
Probably $800 a month. Plus utilities.
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GRG a/k/a goldenrulegirl
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"How you win matters." Ender, Ender's Game
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Post by GRG a/k/a goldenrulegirl on Oct 14, 2015 9:05:09 GMT -5
Silly Bonny, trying to get back on topic.
I need a hair cut.
And, swamp, I have a house to sell you for $40K. Actually, anyone can buy it, not just swamp. POTD!! N
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skubikky
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Post by skubikky on Oct 14, 2015 9:19:25 GMT -5
what about taxes and insurance?
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swamp
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Post by swamp on Oct 14, 2015 11:28:26 GMT -5
Mortgage: $300 Taxes: $300 Sewer/Water: $70 Insurance: I haven't gotten a quote yet.
That leaves $130 a month for insurance, upkeep, mowing, plowing, garbage, repairs.
I would think that the insurance would add about $50 a month if I bundle it onto my homeowners policy. Maybe more.
Meh, I don't think it's worth it.
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Bonny
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Post by Bonny on Oct 14, 2015 12:08:20 GMT -5
Mortgage: $300 Taxes: $300 Sewer/Water: $70 Insurance: I haven't gotten a quote yet.
That leaves $130 a month for insurance, upkeep, mowing, plowing, garbage, repairs.
I would think that the insurance would add about $50 a month if I bundle it onto my homeowners policy. Maybe more.
Meh, I don't think it's worth it.
Out of curiosity did you talk to a bank about whether you could qualify for a mortgage? I ask because you are a new business owner albeit in the same field. Usually they want to see two years of tax returns.
ETA: I have my longer term (say six months or longer) tenants pay for all utilities including water, sewer and garbage. If they aren't paying for these items there's no incentive to conserve.
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swamp
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THEY’RE EATING THE DOGS!!!!!!!
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Post by swamp on Oct 14, 2015 12:44:28 GMT -5
Mortgage: $300 Taxes: $300 Sewer/Water: $70 Insurance: I haven't gotten a quote yet.
That leaves $130 a month for insurance, upkeep, mowing, plowing, garbage, repairs.
I would think that the insurance would add about $50 a month if I bundle it onto my homeowners policy. Maybe more.
Meh, I don't think it's worth it.
Out of curiosity did you talk to a bank about whether you could qualify for a mortgage? I ask because you are a new business owner albeit in the same field. Usually they want to see two years of tax returns.
ETA: I have my longer term (say six months or longer) tenants pay for all utilities including water, sewer and garbage. If they aren't paying for these items there's no incentive to conserve.
Yes. I do bank work for the two banks that gave me the rates. I'm pretty sure I'd qualify.
If I were to buy it, the tenants would have to pay their own electric and heat. No way I could make any money if I included it in the rent, unless I charged about $1500.
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giramomma
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Post by giramomma on Oct 14, 2015 13:02:40 GMT -5
Mortgage: $300 Taxes: $300 Sewer/Water: $70 Insurance: I haven't gotten a quote yet.
That leaves $130 a month for insurance, upkeep, mowing, plowing, garbage, repairs.
I would think that the insurance would add about $50 a month if I bundle it onto my homeowners policy. Maybe more.
Meh, I don't think it's worth it.
The property taxes are super high! Ours are 400/month give or take. But our house is worth about 3.5 times the rental.
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Deleted
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Post by Deleted on Oct 14, 2015 13:12:15 GMT -5
Mortgage: $300 Taxes: $300 Sewer/Water: $70 Insurance: I haven't gotten a quote yet.
That leaves $130 a month for insurance, upkeep, mowing, plowing, garbage, repairs.
I would think that the insurance would add about $50 a month if I bundle it onto my homeowners policy. Maybe more.
Meh, I don't think it's worth it.
The property taxes are super high! Ours are 400/month give or take. But our house is worth about 3.5 times the rental. I think yours are super high! (Swamps are crazy high).
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Bonny
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Post by Bonny on Oct 14, 2015 13:13:37 GMT -5
Out of curiosity did you talk to a bank about whether you could qualify for a mortgage? I ask because you are a new business owner albeit in the same field. Usually they want to see two years of tax returns.
ETA: I have my longer term (say six months or longer) tenants pay for all utilities including water, sewer and garbage. If they aren't paying for these items there's no incentive to conserve.
Yes. I do bank work for the two banks that gave me the rates. I'm pretty sure I'd qualify.
If I were to buy it, the tenants would have to pay their own electric and heat. No way I could make any money if I included it in the rent, unless I charged about $1500.
Sorry if my post wasn't clear. My tenants pay for water, sewer, garbage in addition to heat and electricity.
Have you checked to see who is legally responsible for snow removal?
Does the house have a chimney?
You also need to include a repair fund.
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ArchietheDragon
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Post by ArchietheDragon on Oct 14, 2015 13:13:37 GMT -5
living in town has its price.
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CCL
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Post by CCL on Oct 14, 2015 15:14:22 GMT -5
The property taxes are super high! Ours are 400/month give or take. But our house is worth about 3.5 times the rental. I think yours are super high! (Swamps are crazy high). Yeah, those taxes are out-of-control. Mine are $100 a month for a house worth ~3-4 times that rental. I changed my mind about buying the place. Bonny, I know a lot of people include sewer and trash in the rental fee because if they are not paid the city will put a lien on the property. Don't they do that out there?
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swamp
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THEY’RE EATING THE DOGS!!!!!!!
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Post by swamp on Oct 14, 2015 15:22:00 GMT -5
Mortgage: $300 Taxes: $300 Sewer/Water: $70 Insurance: I haven't gotten a quote yet.
That leaves $130 a month for insurance, upkeep, mowing, plowing, garbage, repairs.
I would think that the insurance would add about $50 a month if I bundle it onto my homeowners policy. Maybe more.
Meh, I don't think it's worth it.
The property taxes are super high! Ours are 400/month give or take. But our house is worth about 3.5 times the rental. Welcome to upstate NY.
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swamp
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Post by swamp on Oct 14, 2015 15:23:31 GMT -5
Yes. I do bank work for the two banks that gave me the rates. I'm pretty sure I'd qualify.
If I were to buy it, the tenants would have to pay their own electric and heat. No way I could make any money if I included it in the rent, unless I charged about $1500.
Sorry if my post wasn't clear. My tenants pay for water, sewer, garbage in addition to heat and electricity.
Have you checked to see who is legally responsible for snow removal?
Does the house have a chimney?
You also need to include a repair fund.
water and sewer get relevied on the taxes if they aren't paid, and aren't metered. I prefer to pay them to make sure they're paid.
I am.
Yes.
I know.
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Bonny
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Post by Bonny on Oct 14, 2015 15:38:07 GMT -5
I think yours are super high! (Swamps are crazy high). Yeah, those taxes are out-of-control. Mine are $100 a month for a house worth ~3-4 times that rental. I changed my mind about buying the place. Bonny, I know a lot of people include sewer and trash in the rental fee because if they are not paid the city will put a lien on the property. Don't they do that out there? It varies by municipality.
Where I live (SF Peninsula) every SFH in the county has to have garbage service. Sewer is on the property tax bill and is calculated based on the amount of water. When this house was rented when we were in AZ and Deutschland the tenants contracted directly with the trash company. For sewer expenses I estimated an additional amount based on last year's bill and adjusted accordingly.
For the San Diego County property the local city sends out a bill for water, sewer and trash. The tenant contracts with the City directly.
For the San Diego beach condo the HOA deals with trash and sewer. Units are not separately metered so electric and gas are also included. It's why I have a whopping HOA monthly bill of $823 which is based on the unit's 1900 sq.ft.
The So. CA cabin is in vacation rental service. It's in an unincorporated area of Riverside County. There is no residential garbage service. Short term rental the PM will pick up trash. Longer term (summer monthly rental) the tenant has to take the trash to the transfer station (about 2.5 miles away). The house is on septic and we pay to have it pumped out about every 5 years. No way to pass through that cost.
In the town the AZ house lies, there is no requirement for trash service (in theory someone could just go to the local transfer station which is about 5 miles away). All of my tenants have contracted with one of the local trash services. House is on septic. The tank is empty when they lease and I require the tenant to pay to clean the septic at the end of their lease and if it fills before that they must pay for that as well.
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Bonny
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Post by Bonny on Oct 14, 2015 15:48:08 GMT -5
Sorry if my post wasn't clear. My tenants pay for water, sewer, garbage in addition to heat and electricity.
Have you checked to see who is legally responsible for snow removal?
Does the house have a chimney?
You also need to include a repair fund.
water and sewer get relevied on the taxes if they aren't paid, and aren't metered. I prefer to pay them to make sure they're paid.
I am.
Yes.
I know.
Would you be renting it furnished? I know I had a blast repurposing some family hand-me-downs and hitting various garage sales and thrift stores. But you'll still need some stuff including appliances if they aren't already included in the purchase. Short term rentals are hard on glassware and dishes so buy something easily replaceable. I've given up on matching drinking glasses and will buy wine glasses by the gross.
Short stay renters (I'm thinking corporate housing vs a vacation rental) have high expectations and are more hotel like vs an investment property. You will be doing a lot more hands-on work. I can't remember, is your DH in customer service? Because that's the kind of personality needed to handle the shorter term stays.
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973beachbum
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Post by 973beachbum on Oct 14, 2015 16:42:18 GMT -5
The taxes seem normal enough. Even if the housing is cheap up there the towns still have to have things like police and fire dept as well as upkeep on the streets and roads. My first thought is that would be more expensive in a rural area per household not less. My thought is in a more populated area more homes can share the expense. I am still trying to wrap my brain around the concept of $60K for an real home. I am imaging an actual Sears shed considering I can't buy a lot for that and I live in the cheaper part of the state.
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Ryan
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Post by Ryan on Oct 14, 2015 16:54:52 GMT -5
I understand the appeal of real estate, but it seems like nobody is really making serious money (cash in pocket) despite how many properties they own.
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debthaven
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Post by debthaven on Oct 14, 2015 18:13:52 GMT -5
The theory of course is, you wouldn't be paying the mortgage, your tenants would. After a few years of them paying rent, voila, you have a paid-off house! Again, that's the theory ...
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Bonny
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Post by Bonny on Oct 14, 2015 18:20:34 GMT -5
The theory of course is, you wouldn't be paying the mortgage, your tenants would. After a few years of them paying rent, voila, you have a paid-off house! Again, that's the theory ... And that the rents continue to rise faster than the repairs!
Today we had a $850 oven repair at the AZ house and I'm expecting about a $2,000 irrigation repair at the San Diego County house.
Yep, I just sit back and collect the checks!
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debthaven
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Post by debthaven on Oct 14, 2015 18:25:14 GMT -5
Ouch Bonny!
Yes I thought that was funny because you all know my stories, haha!
Swamp, initially I thought it was a great idea, but your taxes are really high. And if you are planning to manage it yourselves ... hmm, I'm not sure I'd bother. You both earn really good incomes. You don't need the aggro. We did it precisely because we DON'T earn good incomes, and it's a way we found to grow our wealth.
Is it a house you could see yourselves living in later? Or for your kids at school? If so maybe, but just as an investment, I'm not sure I'd bother, unless the rent covered a PM too.
This said, if you DO really want the house for whatever reason, you can always make the numbers look better by putting more money down (since you said you could buy it outright. ) Just saying ... but at that point it would no longer be just an investment.
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swamp
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THEY’RE EATING THE DOGS!!!!!!!
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Post by swamp on Oct 14, 2015 19:49:16 GMT -5
I can see myself living there in the winters after my kids are grown. The house is too small for a family. There are no colleges in town, they will have to go away for school. There are some in commuting distance, but I do not want them to live at home.
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joemilitary
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Post by joemilitary on Oct 14, 2015 19:57:56 GMT -5
problem solved- the kids can go to college in commuting distance & can live in the $60K house you're going to buy
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obelisk
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Post by obelisk on Oct 14, 2015 20:04:06 GMT -5
I say go for it. It is about the quality of life. All these decisions can be reversed without impacting your future life. Enjoy!
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