I'm looking at a rental property today.

[swamp]

I was discussing it with my mom yesterday. Keep in mind my mom has some dementia and cognitive impairment

She and my dad went with me to look at the place and she really liked it. But then I gave her the rundown on the costs to own and maintain and what I would get fit rent.

She told me I was insane to even consider it. I have too much to do and it wouldn't the worth the effort for the small potential return.

If someone with dementia thinks it's a bad idea, I should listen to her!!

[Bonny]

Oct 16, 2015 12:02:24 GMT -5 swamp said:

I was discussing it with my mom yesterday. Keep in mind my mom has some dementia and cognitive impairment

She and my dad went with me to look at the place and she really liked it. But then I gave her the rundown on the costs to own and maintain and what I would get fit rent.

She told me I was insane to even consider it. I have too much to do and it wouldn't the worth the effort for the small potential return.

If someone with dementia thinks it's a bad idea, I should listen to her!!

LOL, from a financial point of view she's right.

But we don't always buy property from a purely financial perspective. If you think owning an in-town property is something that you would enjoy then you should do it. It's not that much money and you can afford it. I suspect that if you really thought about it there's probably some business angle you could use to make the numbers work better.

We keep our So. CA cabin even though it doesn't make financial sense (hasn't really appreciated and costs us about $3k yr) because we enjoy it. Our roots are in So. CA and it's great fun to have an excuse to visit or have friends and family visit. It's been a wonderful hotel room for the So. CA and AZ rental. We can write-off most of our costs (but not personal expenses) due to its use as a vacation rental.

ETA: I forgot to say that during DH's working years it also served as a psychological refuge. If everything went to hell in a handbasket it would have been a cheap place to live for a couple of years with no mortgage and very few additional expenses. 

[CCL]

Oct 14, 2015 20:51:51 GMT -5 @patstab said:

I bought a rent house for $23k at an auction, needs lots of work, we are piddling along with it. Will likely have $35k to $38k in

it at the most when done. Paid cash.

Pretty sure in the nice condition we will have it in, new bathroom, large closet added, new kitchen, w/d hookups already

moved up stairs. New roof on, furnace minor repairs it was fine, new AC to be added, hubby has it 3/4's rewired, will

have all new plumbing, he is adding insulation. I'm still striping windows, have new continuous guttering, outside is maintenance free. Got

all the problem trees cut down, last week.  I am scraping and repainting the huge garage, about half done.

Taxes are $250 a year, haven't bought insurance on it yet, may not, we are paying water and sewer, $20 a month, electric about $40

been running a dehumidifier in the basement.  What would be expensive is labor and we are doing that.

In the really good condition it will be in rent should be close to $500 a month. Rent here is not cheap and nice houses like this are hard

to find. 

That will be profitable.

No insurance! At a minimum you need to at least get liability coverage.

$500 a month is pretty cheap rent.

[Deleted]

Not kidding myself, weight up......With an outlay of 38k cash, and a 'close to 500 rent income' (say $475./mo.) not including taxes or insurance, it will take you about 7 yrs. to recoup your investment. Add insurance and taxes and call it 8 yrs., add your time and labor in and it's probably close to 10 yrs. before recouping initial investment....