2007-10-24 17:03:12 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It depends. Their mortgage payment shouldnt be a factor for your, they could have owned the property for 20 years, or put half down.
The rent will be based on the value in the markets at the time. What are typical rental homes going for in the area? These are the prices you should base your expectations on.
Try craigslist.org see what the listings show for your area. Good Luck!
2007-10-25 00:08:58 · answer #1 · answered by K&A 3 · 1⤊ 0⤋
Of course, you'd like to but it is always important to try at least to charge more than the interest part of the mortgage payment so that the loan gets amortized over time.
There is much distress these days because it is becoming so difficult either to sell or rent that the rents do not exceed the interest part of the payment. At this point, one must consider whether to suck it up and acknowledge that you've got a loss on your hands and either take it right away or hope that interest rates will decline or the market will come back so that you can sell the property at a profit.
2007-10-25 00:09:59 · answer #2 · answered by LucaPacioli1492 7 · 1⤊ 1⤋
You charge what the market will bear in comperable rent. How much you owe an dhow you finance is your problem. As a renter you wouldnt care how the apartment is financed by the owner, right? But if you want to hold a property's title at a net wash, then figure 10% over a typical mortgage payment to satisfy ongoing maintenance, taxes and unexpected issues to be addressed, less if your handy and you fix em yourself (just like if you lived their yourself) If you rent is too high no one will want to live there. Might want to look in the newspaper for rentals to find out if the rental market will get you what you need.
2007-10-25 00:35:42 · answer #3 · answered by Josie 2 · 1⤊ 0⤋
Best case=yes
If you want to not have to make that next payment alone = charge what the market will bear.
At least you won't have to pay the entire amount alone! Sometimes it is good to think that at least a part of the burden will be off of your shoulders until you can make some decisions about the value that owning this property is bringing to you. Good luck
2007-10-25 01:26:58 · answer #4 · answered by helprhome 5 · 0⤊ 0⤋
Yes. You have to factor in taxes and insurance. Upkeep too.
You'd be losing money if you only charged the cost of the mortgage each month.
2007-10-25 00:11:54 · answer #5 · answered by Cat Lady 6 · 2⤊ 0⤋
yes
2007-10-25 00:11:16 · answer #6 · answered by alienmiss 5 · 0⤊ 0⤋
yes its called cash flow.
2007-10-25 01:09:53 · answer #7 · answered by endgame1915 3 · 1⤊ 0⤋
definately.............
2007-10-25 01:16:30 · answer #8 · answered by richard t 7 · 0⤊ 0⤋