buying a house for temporay residence then likley out of state rental.

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[ARCHIVED THREAD] - buying a house for temporay residence then likley out of state rental.

Posted: 12/1/2007 9:55:53 AM EDT

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

Posted: 12/1/2007 2:01:30 PM EDT

[#1]

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

Posted: 12/1/2007 2:16:34 PM EDT

[#2]

Quoted:
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.

Posted: 12/1/2007 2:22:24 PM EDT

[#3]

Quoted:
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

Posted: 12/1/2007 3:52:21 PM EDT

[#4]

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.

Posted: 12/1/2007 4:58:26 PM EDT

[#5]

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.

Posted: 12/1/2007 4:58:34 PM EDT

[#6]

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.

Posted: 12/2/2007 9:10:24 PM EDT

[#7]

1. I dont believe for a minute you can find property - and pay $300 a month (including taxes and homeowners insurance) owning, when that same property would rent for $700-$800 "easily". If such a place existed - investors would be rampantly all over that... and it would drive the cost of rent down, or the price of real estate up, until the natural balance was in place.

2. Ask youself this question..... you are now living somewhere - would you purposely seek out and buy a rental property in another state? In most cases - no. This might sound like a good investment to you now.... but it can be a major PITA trying to manage it from afar.

Posted: 12/3/2007 1:23:30 PM EDT

[#8]

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.

[ARCHIVED THREAD] - buying a house for temporay residence then likley out of state rental.

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