flygirl1220 0 #26 October 30, 2013 I have one simply because of the market where I'm at in Michigan is awful and it didn't sell. I have had two different renters that have been good. However I had one family that was horrible! Lots of damage, not paying the utilities etc.. If you find you have bad renters get them out. Don't take any excuse because they will try and sweet talk you. Defiantly do a credit check and background check. Get references from past landlords. I could have saved myself a lot of headache had I done that. Quote Share this post Link to post Share on other sites
airtwardo 7 #27 October 30, 2013 When I first moved to the left coast, my roomie at the time was hot & heavy with a recent centerfold... We both got an invite to the Mansion for a Halloween party! My roomie looked like a male model anyway so HE fit right in. ~ I've always looked like a short bus ridin' horny serial killer...BUT when his centerfold 'date' started introducing me as a photographer from New York - the party got rather interesting. lol Little did I realize what a rare 'honor' it is to just be there...I though 'everybody' eventually goes to a party at Hef's house! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
GooniesKid 0 #28 October 30, 2013 HOW?? How are you so lucky and i'm so unlucky? it's gotta be my mojo If I were to ever get invited to Heff's house with all that awesomeness every molecule in my body would explode at the speed of light. I would die happy too. Quote Share this post Link to post Share on other sites
airtwardo 7 #29 October 30, 2013 Early 80's...interesting time. Probably would have enjoyed it more had I known I'd never get within 2 miles of the place ever after!! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
grimmie 186 #30 October 31, 2013 We were hired to take one of Hef's kids into the mansion on a tandem for his 21st birthday last year. The mansion head of security was a pretty cool guy. He said that people try to sneak in to the "Grotto" all of the time. Hef's kid cancelled, security guy said he was a scaredy cat. My one chance at the Holy Grail to meet the man, damn Quote Share this post Link to post Share on other sites
jimmytavino 16 #31 October 31, 2013 sounds like you're doing your homework... get it at a good price and that helps. It would be to your advantage if there is SOME space there, which YOU can keep for your own use. Garage, basement ( DO houses in Fla HAVE basements?????), lockable storage shed, maybe. That way you can keep some tools, supplies, materials etc. On site AND safe...and so you don't have to truck those things back & forth Every time you go there... (and chances ARE...that Someone.... WILL be going there from time to time)...check to make sure that there is enough parking, so that YOUR house doesn't begin to overtax the curbside slots there... It also helps if you are good at "scrounging" when it comes to whatever you might need there... Save by doing labor, yourself. save More by getting materials, from paint to kitchen sinks...on the cheap. while I seldom SELL anything via craigslist and the like.. I Will often consider BUYING from there.. Often people let stuff Go.... for pennies on the dollar. It'll be up to you to determine if the effort ( dealing WITH C List Posters ) is worth it. Adjust your standards a little from "top shelf" to "adequate", when to comes to what amounts to , rental property. Whatever you do will likely already BE a big improvement...Don't cut corners Too much,, but don't get the "biggest and best " all the time. try to meet the neighbors (do it BEFORE you BUY, if at all possible ) .. so that you can assure THEM.... that you will not be absentee landlords ... as well as to put yourselves in a position where you can communicate WITH them when needed.... and Maybe ...enlist their help in cases where that might be necessary. Practice " give & take " ... Choosing tenants is the tough part... those who ARE initially financially capable and responsible may , due to a number of reasons, have that status changed...things change, life hands out some tough situations .... Maybe a month to month lease would work best ... so That IF you give proper notice...you can "invite" them to depart the premises,,, and then NOT be stuck for the duration of a years lease...when they start giving some sob story or some tale of woe.... why they aren't paying the rent... That's when they become a liability and Not an asset. Should THEY choose to end the tenancy be ready to use your good judgement to replace them.... Around here some months of the year are Bad for trying to move... but hopefully That isn't the case where you are... Only tie up as much down payment as needed..or just a bit more. to result in a manageable Mtg. payment and so that YOU aren't getting squeezed, should you need $$$$ for anything...what are property Taxes Like??? expensive? or sensible? I hope that real estate in your area starts to go on the upswing.....but ONLY after you have made your purchase... Quote Share this post Link to post Share on other sites
PhreeZone 20 #32 October 31, 2013 We tried renting our house out and on paper it rented fast but the issue was that the renters wanted someone at the drop of a dime to be there to fix anything and to get a repair service to do that was an outrageous expense, I would do the work myself but they were trying to talk me into defined contractual times for repair, returned calls, number of times a month the lawn would be mowed, timeliness for snow removal etc and it was going to be things like 1 hour for work to start on most issues or they wanted to have rent reductions that would occur. Basically it was going to tie me to being within an hour of the house at all times and being at their beck and call. After looking around at comps we were not going to be able to get enough out of the rent and the fees to cover the mortgage so we just sold it at a loss rather than slowly bleed on it. An option to consider is Section 8 housing. It sucks for a lot of reasons but its guaranteed money in the back and they pay for damages to a point. You have to get into lower working class areas to be the right fit but if you can do it the potential is there to avoid a lot of issues since people with vouchers usually will try to do anything they can to avoid losing them and things like damages and missing their portion of the rent all is terms for eviction from the program. You can get extra money for things like having fans in every room and having the house properly storm proofed.Yesterday is history And tomorrow is a mystery Parachutemanuals.com Quote Share this post Link to post Share on other sites
airtwardo 7 #33 October 31, 2013 Quote the renters wanted someone at the drop of a dime to be there to fix anything and to get a repair service I had a problem like that once, I gave the guy a break even letting him IN...seemed like a nice 'clean' family. Was getting three calls a week...d00d had the rental agreement under a microscope. Well, MOST of it anyway...I showed up on Christmas once with 4 buddies to change a ceiling fan right over the dining room table full of food. An 'emergency' plumbing situation on his part, required a 2am visit on MY part ...to change the rubber washer for the washing machine hose. ~ I had to set an alarm to get up...Always late with the rent I finally served an eviction...asshole cut 1/2 the wires in the house before he left. AC - stove, furnace, fridge... He left a 'leaking' car GAS TANK in the back yard......did I tell ya I always have an ice pick in my tool box?Did ya know that's an EPA violation considered hazardous waste into the ground water? HE DOES now...$12,000 fine plus clean up & court costs! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
ryoder 1,590 #34 October 31, 2013 PhreeZone ... number of times a month the lawn would be mowed, timeliness for snow removal... WTF??? Who the hell expects the owner to do lawn-mowing and snow-removal when they rent a house?"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones. Quote Share this post Link to post Share on other sites
ryoder 1,590 #35 October 31, 2013 airtwardo He left a 'leaking' car GAS TANK in the back yard......did I tell ya I always have an ice pick in my tool box?Did ya know that's an EPA violation considered hazardous waste into the ground water? HE DOES now...$12,000 fine plus clean up & court costs! "There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones. Quote Share this post Link to post Share on other sites
PhreeZone 20 #36 October 31, 2013 They were looking basically for the same effort of ownership they would be getting out of an apartment but wanted to be in a detached home config.Yesterday is history And tomorrow is a mystery Parachutemanuals.com Quote Share this post Link to post Share on other sites
JerryBaumchen 1,468 #37 October 31, 2013 Hi Jim, Quote ...to change the rubber washer for the washing machine hose After my divorce I was a house renter. The landlady was a complete nut, but I did not know that until after my son & I had moved in. Just after dinner one night I heard some water running in the kitchen, thought that is odd because I had not started the dishwasher. Turned out it was the hot water riser going to the faucet; had water all over the place under the sink. I figured if that one went kaputz, the next one will go next. So I went up to the store that night and bought two risers. I told the landlady about them ( probably about $2.69 each ) and that I would like to be reimbursed for the costs. She completely exploded and said that she had parts and that I was not authorized to spend any money on things like that. I tried to explain that I could have called a plumber in at 8 PM and it would have cost a whole lot more. Was very glad when we moved out of that house. JerryBaumchen Quote Share this post Link to post Share on other sites
dpreguy 14 #38 October 31, 2013 And don't forget that because it is not your principal residence, Obamacare-the ACA, levies a huge tax on the sale of your investment if you sell it for more than it's purchase price. As I recall it is 6% (can't remember exactly) of the amount beyond the purchase price. Ask any tax advisor or a good realtor. If it is a business, then not. It is subject to the regular business asset tax calculations. Requires schedule C 'Profit or loss from business or profession'. If you keep it for more than a year you probably get capital gains treatment for the profits. Quote Share this post Link to post Share on other sites
jackwallace 3 #39 October 31, 2013 My brother (the slum lorde) says you need a four place to make money. He has 3 of them and rents the upper floor at his house. My neighbor has three houses. He is an ex cop and only rents to cops and firemen. Because he says they have a steady job and he knows where to find them. Another jumper i know has a couple houses and bitches about his renters all the time.U only make 2 jumps: the first one for some weird reason and the last one that you lived through. The rest are just filler. scr 316 Quote Share this post Link to post Share on other sites
jimmytavino 16 #40 October 31, 2013 true enough...there are many sides to it.Wow...How is it that people who are lucky enough to be living in YOUR property, for which YOU hold all the responsibility...Dare STATE such idiotic terms in Your agreement...hahaha.. the Damn King of Siam doesn't get ONE Hour service !!! I might tell them to move Back into Mommys House........or find a place that They can OWN....their own Damn selves...When folks have only a small financial stake in a place they can sure do some damage...I let a guy convince me to rent to him,,, Cause his kids " were in the middle of the school year " and he " didn't wanna disrupt that ".. Like a sap... I said OK.. His B.S. helped make it Easy to decide to SELL the place. Twardos post had me Laughing out Loud!!!.... True TRUE... Long ago we had good luck with Section 8 because the money,,, although less than we wanted, was always there..Still lots of work, lots of attention needed, sometimes at bad hours, helps fill the "con" side of the list... Had not thought about the schedule C stuff.. Insurance, accounting fees etc...could become a PITA... things used to be different.... regarding costs, financing, local and fed tax implications....etc. But when any savings is getting less than 1 % interest.. sure it makes sense to invest rather than "save".. I've sometimes thought that a solid excellent condition muscle Car from the 60's ( IF purchased at a Bargain ) Can appreciate in value waaay more than 1 % without ANY to-do list, payments to make, Tenants to deal with, or Emergency Call-Outs....IF you want an investment which appreciates AND generates regular or semi-regular income,, and you're gonna go schedule C anyway....how about if you Buy a Cessna 182 and use your excellent contacts to rent it out to FLY 150 or 200 hours a year......OR. again only if it's at a Bargain( "so sorry for the seller", ) Price.!!!the Last time I dealt with owning a house other than our HOme...was over 20 years ago...i was younger, stronger, and more full of "spit & vinegar " than nowadays.I WAS encouraged with our first one, but the 2nd one turned me off to the idea.... not sure if things have improved enough to reconsider the idea... Keep brainstorming skymama... There are lots of details to consider...some yet to be uncovered... good thread... Quote Share this post Link to post Share on other sites
JohnMitchell 16 #41 November 1, 2013 airtwardo***Run a credit check on any potential renters! THAT is an ABSOLUTE! Rental agencies do the background & are pretty good for the most part, but these days it's just as easy to do yourself... RHA, Rental Housing Association, charges about $100 a year for membership and about $32 to run a tenant screen. It's been well worth it. I found potential renters with felony records, bad credit, etc. The one that past the screen has been a great renter for over 4 years, no problems. I feel it's all in the screening. Quote Share this post Link to post Share on other sites
Nataly 38 #42 November 1, 2013 Been on both sides of the fence... There are horrible landlords/landladies and horrible tenants. Unfortunately, like when you're recruiting at work, you can't always get it right. As silly/basic as it sounds, pay attention to your gut. Meet the person/persons beforehand and have a chat with them. You can save yourself a lot of headaches/money with that shared cup of coffee... ETA - if your goal is to flip it in a few years' time, remember that you will need to refresh the place once the tenants are gone... So factor in 1 and a half or 2 renovations in your calculations (1 when you buy, another when you sell). Also, don't buy super-crap furniture if you plan on renting it furnished. Invest in a good couch and a good bed at the very least - in the long run it's cheaper than replacing these every time you change tenants."There is no problem so bad you can't make it worse." - Chris Hadfield « Sors le martinet et flagelle toi indigne contrôleuse de gestion. » - my boss Quote Share this post Link to post Share on other sites
skymama 37 #43 November 1, 2013 I signed an offer for the house yesterday and word on the street is that the Seller will accept it. It's a short sale, so there's no tellin' if the bank will accept my offer. Now it will just be wait and see... The house is solid block (great for FL because of termites), fenced in back yard and has had some updates. I think it was built in '71. There is laminate throughout, which I was very pleased with so we wouldn't have carpets to replace. From what we could tell without an inspection, there are some minor repairs to do and the interior needs a fresh coat of paint, but it's really not bad at all. As for finding a renter, I totally forgot my brother is getting a divorce and is right now living with my parents (his wife has their house). I'm working on him to consider renting from me. Win-win for everbody! She is Da Man, and you better not mess with Da Man, because she will lay some keepdown on you faster than, well, really fast. ~Billvon Quote Share this post Link to post Share on other sites
theonlyski 8 #44 November 1, 2013 skymama As for finding a renter, I totally forgot my brother is getting a divorce and is right now living with my parents (his wife has their house). I'm working on him to consider renting from me. Win-win for everybody! I personally wouldn't mix family and finances, but I know that your brother probably isn't as bad as mine. No home inspection? Ballsy "I may be a dirty pirate hooker...but I'm not about to go stand on the corner." iluvtofly DPH -7, TDS 578, Muff 5153, SCR 14890 I'm an asshole, and I approve this message Quote Share this post Link to post Share on other sites
skymama 37 #45 November 1, 2013 Oh, we'll do an inspection, we just didn't do one yet. The contract states basically states that I can walk if a major problem arises. And, my brother is cool. Plus, I write his paychecks at work, so I have bargaining power. She is Da Man, and you better not mess with Da Man, because she will lay some keepdown on you faster than, well, really fast. ~Billvon Quote Share this post Link to post Share on other sites
theonlyski 8 #46 November 1, 2013 skymama Oh, we'll do an inspection, we just didn't do one yet. The contract states basically states that I can walk if a major problem arises. And, my brother is cool. Plus, I write his paychecks at work, so I have bargaining power. Payroll deduct. Nice."I may be a dirty pirate hooker...but I'm not about to go stand on the corner." iluvtofly DPH -7, TDS 578, Muff 5153, SCR 14890 I'm an asshole, and I approve this message Quote Share this post Link to post Share on other sites
FlyingRhenquest 1 #47 November 1, 2013 theonlyski *** As for finding a renter, I totally forgot my brother is getting a divorce and is right now living with my parents (his wife has their house). I'm working on him to consider renting from me. Win-win for everybody! I personally wouldn't mix family and finances, but I know that your brother probably isn't as bad as mine. No home inspection? Ballsy It's not so bad as long as you get them to sign an agreement not to run a meth lab on your properteh! But then, her relatives probably aren't as bad as mine, either.I'm trying to teach myself how to set things on fire with my mind. Hey... is it hot in here? Quote Share this post Link to post Share on other sites
theonlyski 8 #48 November 1, 2013 My brother would try to run a meth lab. The fucker would even BEG me for the money to get it started. Guess I should at least be happy in his entrepreneurial look at things."I may be a dirty pirate hooker...but I'm not about to go stand on the corner." iluvtofly DPH -7, TDS 578, Muff 5153, SCR 14890 I'm an asshole, and I approve this message Quote Share this post Link to post Share on other sites
dpreguy 14 #49 November 1, 2013 Might think about making the house a business as a Sub S corporation, or some other business entity. LLC etc. The redistribution of wealth provision of the Affordable Care Act does extract the 6% "surcharge" on the profit from the sale of your so-called vacation home. This surcharge is in addition to the income tax you will also pay. Even as a business you will pay applicable ordinary income tax on the sale of his property, but at least it won't fall under the boldfaced rape of a 6% surcharge which will occur if it is considered a "vacation home". Quote Share this post Link to post Share on other sites
skymama 37 #50 November 2, 2013 Thanks for the tax advice, I haven't gone so far as to incorporate, although I do know how to do that. The seller accepted my offer today, now I just have to wait for the bank to approve. And, thanks to you all for also reminding me to put "no meth labs" in the lease agreement. She is Da Man, and you better not mess with Da Man, because she will lay some keepdown on you faster than, well, really fast. ~Billvon Quote Share this post Link to post Share on other sites
