My income tax rate is 15% and if sold, the proceeds would be subject to capital gains. The house is in good condition now but over time rentals would deminsh the value. Pets could not be allowed. A property manager will eat up at least 10% plus renewals each year. Property taxes are $4,000 per year.
2006-07-12 11:24:55 · 4 answers · asked by Patrick 1 in Local Businesses ➔ United States ➔ San Antonio
Ok. My tip is: Read Rich Dad, Poor Dad from Robert T. Kiyosaki. In that book you will find the real key from the Real State. Do you know what's the real business of McDonalds??? It is not the burgers, it is the REAL STATE. McDonalds Corporation has more properties in the world than the Catholic Church.
If you worry about 10-15% then it is the same if you rent or if you sell. If you sell, where are you going to invest your money? The Stocks are so risky (Alan Greenspan never invested in stocks)
My Advice is RENT. Now the question is, What are you going to do with that money. $1000 per month could be the payment for another house and in 25 years, you will have 2 houses instead of 1 without loosing a single penny.
$1000 is also the money you can invest with a friend who is needing cash for open a restaurant. Think, If you invest those monthly 1000 and you get 15% in 6 months (like financing a friend's business) you will get the 15% you concern about.
About the property taxes. Charge that to the ppl living in that house, so rent it in 1334 dlls.
Don't loose a single penny.
If selling is your thing, Another tip could be sell for 120 K, pay the taxes. With the remain 100, buy a house to a desperate couple. Believe me, if you find in a neigborhood a 200K house for more than 3 months, they will accept 100K cash. look into divorced couples. Then, sell the 200 house in 170. You earned 70K.
regards and Enjoy the Book reading.
2006-07-12 11:36:55 · answer #1 · answered by Armando E 3 · 0⤊ 0⤋
Between property taxes and management fees, it will be about $435. You forgot to include insurance, which you will need not only for fire, etc, but also if your tenant gets hurt on the property.
Don't forget to do a credit check and get references. My mother had rental property and on several occasions people did not pay which requires a court order to get them out. Also, she had several tenants that damaged the property on the way out, to the point that the security deposit did not cover the repairs.
So, with the property tax, agent fee and insurance as a regular bill, I would opt to invest the money.
2006-07-12 11:34:45 · answer #2 · answered by kny390 6 · 0⤊ 0⤋
The San Antonio housing market is on the rise, which means your property is going to appreciate. I would rent it out for at least another year and wait for the market to turn in your favor. Trust me, Austin and San Antonio is the next hot market.
WOW, your property taxes in Texas are outrageous!
2006-07-12 11:29:02 · answer #3 · answered by WiserAngel 6 · 0⤊ 0⤋
Dont get into rental properties unless you have a lot of $$ to keep afloat. Just remember if they dont pay their bill you cant pay yours. It takes forever to get them out and try collecting on damages, thats a joke!!
2006-07-12 11:30:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋