Will landlording be a good investment and maybe make me some money or will it be more of a headache? I am looking for real answers only, please.
2006-10-16 06:14:44 · 6 answers · asked by Coqueta 1 in Business & Finance ➔ Renting & Real Estate
I should add, this is in Wi. The duplex costs about 100,000 and currently one renter is paying about $450 a month and I would live in the other side.
2006-10-16 06:42:59 · update #1
It's usually a good investment. Think about it.....on the rental 1/2 you get $450 to use toward the mortgage which builds equity in the house. Also, you can deduct or depreciate all expenses related to the rental 1/2 (including 1/2 of the house itself). So most (or more) of your income from the $450 is usually wiped out on your taxes (or you may even have a loss to deduct).
On the downside.....if the renter fails to pay the rent you are still stuck with the bills, & have to figure out how to get them out. In addition you have to fix everything that breaks. Are you handy? Or do you have someone available who is?
If you go thru with it, the first time they are late even one day with the rent fine them. Make sure it's in the agreement & stick to it.
Make sure you check with your local township/city to make sure you don't have to pay business taxes (and/or get a business license).
2006-10-16 07:32:35 · answer #1 · answered by Dee 4 · 0⤊ 0⤋
The answer to your question is YES, it can be a good investment and it can be a headache. If you have never been a landlord before you need to find out what your city and state laws are. If you are buying the property with a tenant already in there you will be assuming the current lease. And I can promise you, if the current Landlord has ANY problems with the tenant he/she is NOT going to tell you about it. Then again, they may be wonderful tenants who will cause you no problems. You need to really look over the lease that is current and you may want to speak with an attorney to see if the lease is completely legal and if he/she would have any suggestions on making it a better lease. There are alot of pros and cons to being a landlord especially when they live right next door. So make sure you can deal with your door being knocked on and you may have a PO'd tenant saying " my toilets backed up" Good Luck and if you need anything else just holler. Regards KG
2006-10-16 08:08:26 · answer #2 · answered by kgreives 4 · 0⤊ 0⤋
It would be a good investment and renting out 1/2 will help you with the mortgage payment. Just be sure that all the utility bills/lines are set up separately. It will be a pain.....
Although, I wouldn't advise doing that--you will never have any privacy-your tenant will bother you for all sorts of tedious things. Whereas, if the landlord lived elsewhere, tenants seem to adhere to business hours in contacting their landlords; with the exception of emergencies.
One plus to your plan, you would know if they ever moved out/skipped out on the rent sooner than if you didn't live in the other half. The other benefit to that, your rent monies will be on time--the tenant can't use the "it's in the mail" LOL excuse.
2006-10-16 06:49:38 · answer #3 · answered by dakotanmisty 4 · 0⤊ 0⤋
It depends on your credit and the type if intrest rates you would give. A duplex may run around 300000. With a good score your mortage may be 1800 a month you can rent one side for 1200.00
which leaves you 600 to pay out of your pocket. Now with all the other responsibilities you brak even. But if it was a three unit then you on something.
2006-10-16 06:20:25 · answer #4 · answered by Luckys Charm 4 · 0⤊ 0⤋
If you have never been a landlord before, it is a tough job. Obviously doable, but be prepared to have hard work in handling the property, the tenants and avoiding the many pitfalls that lurk. Do not think you will buy this property and simply sit back and collect profits or you will be in hell within weeks. It means active hands on work in maintenance, screening tenants, getting calls in the middle of the night...yet it can be very rewarding personally and financially.
2006-10-16 08:59:09 · answer #5 · answered by kingstubborn 6 · 0⤊ 0⤋
a common lease is in basic terms for 12 months. probability is, they did not in basic terms a touch signal yet another lease. you've gotten to attend the lease out. you are able to ask your authentic sources agent how a lot the areas are well worth to employ. Then strengthen the lease. you are able to ask them to flow, too. Or, you would possibly want to be an outstanding man or woman and ask to fulfill with both cutting-edge tenants. possibly you are able to paintings something out in a civilized way. perhaps one in each and every of them needs to flow besides. sense it out first.
2016-12-04 21:38:49 · answer #6 · answered by Anonymous · 0⤊ 0⤋