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Post by Crunchy Col on Mar 8, 2019 12:55:42 GMT
Anyone own property that they don't live in? Anyone invested in anything similar?
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Post by Deleted on Mar 8, 2019 16:38:03 GMT
Yes, I own a house in Eugene, OR, that I plan to retire in, but rent out now. The funny/sad thing is the mortgage and rent are less in Oregon than my one bedroom apartment in the Bay Area. In fact, combined, the mortgage and home rent are only $500 less than my apartment rent. And Eugene is the third most populous city in Oregon after Portland and Salem, the capitol. That's how expensive the SF Bay Area is - I can hardly wait to leave.
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Post by Crunchy Col on Mar 8, 2019 16:41:01 GMT
How's renting it out working for you? Any worries with tenants? Did you screen/interview before signing contracts? Have you needed to go round to fix things often?
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Post by Deleted on Mar 8, 2019 16:55:20 GMT
How's renting it out working for you? Any worries with tenants? Did you screen/interview before signing contracts? Have you needed to go round to fix things often? So, I've owned two houses. The first place I bought was in a nicer neighborhood, needed some work, but I sunk money in hoping to recoup since it was in a very nice neighborhood. The mo. rent was $1,600. I have a property management company that collects the rent and managed the work done on the first place. They normally collect 10% for this work. I bought it for $289,000 and sold it a year later for $325,000. It was on the market for less than a month. The second place was $255,000 and the owners of the house wanted to rent it for a year because they were getting a custom home built. I agreed to rent it to them for $1,300 a month, which covered my mortgage. I told the prop. mgmt. company I'd only pay them 5% because I'd already lined up a renter and they could take or leave it. They took it. The renters' house is done and I'm looking for a new renter. The prop. mgmt company will now collect their 10% again. But I'm sure the rent, minus the prop. mgmt. fee will cover my mortgage again. I'm not looking to make a ton of money on this. Just want the rent to pay for the mortgage until I move up there. Because it was a rental, and I live in California, my down payment was 25%. Home buyers here usually put down around 5%, outside the SF Bay Area, which is crazy when it comes to home buying. Oregon is normal, California is not.
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Post by Crunchy Col on Mar 8, 2019 16:58:33 GMT
Thanks J.
I was just interested in the risks and stresses of owning and renting out property generally, and whether it's a worthwhile investment these days. I suppose that varies from region to region, and is also dependent on the property itself.
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Post by Deleted on Mar 8, 2019 17:00:11 GMT
How's renting it out working for you? Any worries with tenants? Did you screen/interview before signing contracts? Have you needed to go round to fix things often? To answer your second question. All my tenants have been very good and I haven't had to pay any maintenance. My dad used to rent a small cabin near the house where I grew up and I'd help with the tenants. He used to post rental notices at two local hospitals and a local university. And a long time ago, at the headquarters of the local pro football team. He figured nurses, residents and pro football players could pay the rent and be responsible. He had one pro football player rookie play there, but usually his tenants were nurses and medical residents. They would rent for three years or more, on average.
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Post by Deleted on Mar 8, 2019 17:01:48 GMT
How's renting it out working for you? Any worries with tenants? Did you screen/interview before signing contracts? Have you needed to go round to fix things often? To answer your second question. All my tenants have been very good and I haven't had to pay any maintenance. My dad used to rent a small cabin next door to the house where I grew up and I'd help with the tenants. He used to post rental notices at two local hospitals and a local university. And a long time ago, at the headquarters of the local pro football team. He figured nurses, residents, young university professors, and pro football players could pay the rent and be responsible. He had one pro football player rookie live there, but usually his tenants were nurses and medical residents. They would rent for three years or more, on average.
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Post by Crunchy Col on Mar 9, 2019 13:18:51 GMT
I'm going to look at a little flat next Tuesday. It needs a bit of work, but as it's so small (basically two rooms) that shouldn't be a huge expense. I'm not going to rush into anything but I need a place to move my stuff into (at the very least) before we sell my Mam's house (which is where I am right now). Once it looks OK, I could let it out and then move abroad again to work. Maybe. Maybe maybe.
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Post by tory on Mar 11, 2019 12:43:48 GMT
The buy to let market is being clamped down in the UK just a bit. I'd speak to reputable financial advisor first.
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Post by Crunchy Col on Mar 11, 2019 12:59:54 GMT
It's more about the 'buy' than the 'let', really. I like the idea of having a place to stay in my hometown (and maybe retire to, eventually) but I won't be here most of the time. But everybody needs a home, right? A base? This place is right down by the harbour - the location is absolutely perfect. My only worry (if I don't let it out) is the risk of burglary, and the noise levels (it's almost next door to a pub): I also like the idea of doing up the place slowly - kind of a little project for myself for the summer. If I don't live there it's a place to paint, to make music. It's an investment, whatever happens.
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Post by Reactionary Rage on Mar 11, 2019 14:28:07 GMT
It's always an investment.
Could you not pay some local rent company to handle all the boring stuff and give you a bit of piece of mind?
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Post by Deleted on Mar 11, 2019 15:20:00 GMT
It's more about the 'buy' than the 'let', really. I like the idea of having a place to stay in my hometown (and maybe retire to, eventually) but I won't be here most of the time. But everybody needs a home, right? A base? This place is right down by the harbour - the location is absolutely perfect. My only worry (if I don't let it out) is the risk of burglary, and the noise levels (it's almost next door to a pub): I also like the idea of doing up the place slowly - kind of a little project for myself for the summer. If I don't live there it's a place to paint, to make music. It's an investment, whatever happens. Property management company like I do if rented full-time, or make it an AirBnB or VRBO. You could work with a local cleaning person to clean it after guests stay and have a handyman on call. You just need their emails/phone numbers.
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Post by Deleted on Mar 11, 2019 15:25:31 GMT
The buy to let market is being clamped down in the UK just a bit. I'd speak to reputable financial advisor first. Oregon's property tax is pretty high (they don't have state income tax) and they are very wary of Californians doing what I'm doing because of that. But they're very wary of Californians, in general. It's like the French and the English. I got around it, but then I have good credit rating, savings, and decent income.
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Post by Crunchy Col on Mar 11, 2019 16:54:01 GMT
It's always an investment. Could you not pay some local rent company to handle all the boring stuff and give you a bit of piece of mind? If I need to, yeah. I'm going to look into it. It's a big step for me and a wee bit scary (hence the thread!). This little flat is going for 50 grand, which is reasonable. As long as it's not a complete stinking mess inside, and there aren't any risks or concerns I haven't yet realised, then it makes sense just to buy the place outright. Property management company like I do if rented full-time, or make it an AirBnB or VRBO. You could work with a local cleaning person to clean it after guests stay and have a handyman on call. You just need their emails/phone numbers. Yes.
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Post by Deleted on Mar 11, 2019 17:15:53 GMT
Another idea is letting the owner of the pub help manage it as a rental or AirBnB - I don't know how good/bad a business person he or she is. Give him a small cut to help manage.
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