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Posted: 12/1/2007 9:55:53 AM EDT
[Last Edit: 12/1/2007 10:00:07 AM EDT by Orion_Shall_Rise]
I am just out of college working a job I will likely be in for a few years, but not for too long, with likely moving out of state not to long after.

Considering buy a older house and fixing it up while I live there, and then likely renting it when I move on.

Say 300$ a month mortgage/cost/insurance total in a place that would likely rent for $700-800 a month easy, but I would likely not be nearby to keep an eye on it.


normally I would not consider this with the housing market and economic outlooks, but just paying a mortgage instead of rent in about two year the place would be 25% paid off
Link Posted: 12/1/2007 2:01:30 PM EDT
huh???????????????
A 300 dollar a month payment is about $30,000 house
30,000 dollar houses don't rent for 800 dollars a month
Your math doesn't make sense
Start over and give us some details


oh, and being an out of state landlord sucks
Link Posted: 12/1/2007 2:16:34 PM EDT

Originally Posted By BozemanMT:
huh???????????????
A 300 dollar a month payment is about $30,000 house
30,000 dollar houses don't rent for 800 dollars a month
Your math doesn't make sense
Start over and give us some details


oh, and being an out of state landlord sucks


That math is about right. I'm in a $40K house and pay $370/month (includes tax impound).

Best idea for renting out-of-state: get someone, a real estate agent for example, to manage it for you. They can do bg & credit checks to weed out the more obvious of the jerks.
Link Posted: 12/1/2007 2:22:24 PM EDT

Originally Posted By Orion_Shall_Rise:
I am just out of college working a job I will likely be in for a few years, but not for too long, with likely moving out of state not to long after.

Considering buy a older house and fixing it up while I live there, and then likely renting it when I move on.

Say 300$ a month mortgage/cost/insurance total in a place that would likely rent for $700-800 a month easy, but I would likely not be nearby to keep an eye on it.


normally I would not consider this with the housing market and economic outlooks, but just paying a mortgage instead of rent in about two year the place would be 25% paid off


The second half of your math is pretty broken as well. You need to compute your "% paid off" with the same assumptions as your mortgage. For example, the 20-30 year mortgage that will give you a $300 per month payment will be WELL UNDER 10% paid off in two years if you are ONLY making the monthly paymen. In fact, because of the way amortization works, it is probably more like 5% paid off.

shooter
Link Posted: 12/1/2007 3:52:21 PM EDT
Yes I understand amortization and am running calculations based on overpaying monthly.

As for the rent value:

this is a rural area at right at about 1 hours commute from a city.
county is attempting to fight development, and parcelizing zoning end up with single lots up for ~50k so a new lot with a trailer is ~125-150k

There are a couple old southern small dying towns that have lots of comps for sale that kill older structure prices for the whole county.

A two bedroom apartment goes for ~600 locally, houses range from 750-1000 a month and always rent within a week or two.
Link Posted: 12/1/2007 4:58:26 PM EDT
What part of the state are you in? I'm into a few rentals and some of your figures add up and some don't. Like one of the guys above said, if you do this hire a manager to handle your house when you leave the state. You DO NOT want to be outa state and handling a property.
Link Posted: 12/1/2007 4:58:34 PM EDT
What part of the state are you in? I'm into a few rentals and some of your figures add up and some don't. Like one of the guys above said, if you do this hire a manager to handle your house when you leave the state. You DO NOT want to be outa state and handling a property.
Link Posted: 12/2/2007 9:10:24 PM EDT
Link Posted: 12/3/2007 1:23:30 PM EDT
Being an out of state landlord is a PITA. You'll likely end up paying a Poperty Manager to keep an eye on things.

...and holy shit. While I was in college I paid $900/month for my apartment then $1650 for my first house. Do they give property away where you guys live!?

If you're going to view a property from an investment standpoint buy an older house, do upgrades, then just sell it when you move out of state and hope the market hasn't taken a shit on your region.
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