Ok - obviously not gambling related - but since we have posters across the US - thought I’d ask here. What’s the lowest rent you see in your area for a single family/3bed - 2 bath house ? Assuming of course no roommates - not renting from or living with relatives.
Reason I ask is simply this - I’m dealing with an inherited property that I currently rent out. It’s more than a house - it’s country and has a fair amount of acreage to it. Former family farm on my dad’s side where I grew up.
I’m a couple hours away and the house itself is probably 100 years old. It’s been updated over the years and while not “modern” by most standards - it’s also not best to hell. It’s been gutted and remodeled last about 20 years ago so showing age but not horrible shape by any means.
Initially, did not want to sell - I mean it’s been in the family for probably 100 years and just felt “wrong” to sell and profit something that has been handed down generations. Opportunity presented itself to rent to someone local last year - so I agreed to rent it out at $850 month to month.
Knew the people - and in a way felt kind of sympathetic towards them - they got hit with 2 grandkids (around age 4-5) unexpectedly and were living in a mobile home - so pretty tight quarters. They seemed to be generally good people so I said I’d rent to them - even waived deposit and said I’d gift a few months for doing the clean out on the place.
So here we are 6 months later - they have been responsible for 4 months rent - and no month has ever been paid before the 15th (due 1st). I told them first time it was late - I’m flexible - but you need to tell me when you’re going to be later than 10th. Of course continues to pay when they “can” or feel like it (I can’t tell which - none of my business - like to think they are honest - but who knows).
Now I’m not exactly poor - but also not wealthy either. Generally get by every month and kick back to retirement fund - and keep some savings but still have a mortgage/car payment and credit cards. On top of that got a smallish mortgage on that place (100k) that is a 10 year balloon (so need to refi in next 2 years).
Now I’ve got a couple of options - I can refi and keep renting - sell just the house and keep majority of the land (would net 100-150k after payoff of mortgage) or just sell it all and probably net 500k. I’m thinking 2nd option - I mean this way keep the place in the family aside from the house I’ll never live in again in my life - free up some cash to pay off all non mortgage debt. Of course the downside is I’m still sitting on a lot of untapped equity on a property I don’t use and while not a lot of maintenance there - it’s still a liability.
If I sell - a lot of free cash suddenly - and why mortgage free living sounds nice - I mean tons of free cash flow monthly with no where to invest and paying a hefty capital gains tax is a tough pill to swallow up front.
Then there’s the issue of booting tenants - I feel bad selling so shortly after renting to them - but at the same time I think it’s clear they are going to keep taking advantage of me. Slow paying - have had multiple service calls for minor stuff and more complaints than rent checks about trivial stuff and request for me to accommodate them (for example - as mentioned this is a big property and I have multiple buildings on site - rent is house and a stall in garage I told them I’d clear out for parking in winter. Shortly after they move in - they ask me to clear out the entire garage so they can stop paying rent on their storage unit. No extra $$ offered - just expect me to move my junk so they can store theirs free).
I mean the way I look at it - they are living in a house for half of what the mortgage would cost on just the house and treating it like their own (the entire property). It’s clear simply talking isn’t working - hate to be the asshole here - but sometimes nothing else gets the point across.
Reason I ask is simply this - I’m dealing with an inherited property that I currently rent out. It’s more than a house - it’s country and has a fair amount of acreage to it. Former family farm on my dad’s side where I grew up.
I’m a couple hours away and the house itself is probably 100 years old. It’s been updated over the years and while not “modern” by most standards - it’s also not best to hell. It’s been gutted and remodeled last about 20 years ago so showing age but not horrible shape by any means.
Initially, did not want to sell - I mean it’s been in the family for probably 100 years and just felt “wrong” to sell and profit something that has been handed down generations. Opportunity presented itself to rent to someone local last year - so I agreed to rent it out at $850 month to month.
Knew the people - and in a way felt kind of sympathetic towards them - they got hit with 2 grandkids (around age 4-5) unexpectedly and were living in a mobile home - so pretty tight quarters. They seemed to be generally good people so I said I’d rent to them - even waived deposit and said I’d gift a few months for doing the clean out on the place.
So here we are 6 months later - they have been responsible for 4 months rent - and no month has ever been paid before the 15th (due 1st). I told them first time it was late - I’m flexible - but you need to tell me when you’re going to be later than 10th. Of course continues to pay when they “can” or feel like it (I can’t tell which - none of my business - like to think they are honest - but who knows).
Now I’m not exactly poor - but also not wealthy either. Generally get by every month and kick back to retirement fund - and keep some savings but still have a mortgage/car payment and credit cards. On top of that got a smallish mortgage on that place (100k) that is a 10 year balloon (so need to refi in next 2 years).
Now I’ve got a couple of options - I can refi and keep renting - sell just the house and keep majority of the land (would net 100-150k after payoff of mortgage) or just sell it all and probably net 500k. I’m thinking 2nd option - I mean this way keep the place in the family aside from the house I’ll never live in again in my life - free up some cash to pay off all non mortgage debt. Of course the downside is I’m still sitting on a lot of untapped equity on a property I don’t use and while not a lot of maintenance there - it’s still a liability.
If I sell - a lot of free cash suddenly - and why mortgage free living sounds nice - I mean tons of free cash flow monthly with no where to invest and paying a hefty capital gains tax is a tough pill to swallow up front.
Then there’s the issue of booting tenants - I feel bad selling so shortly after renting to them - but at the same time I think it’s clear they are going to keep taking advantage of me. Slow paying - have had multiple service calls for minor stuff and more complaints than rent checks about trivial stuff and request for me to accommodate them (for example - as mentioned this is a big property and I have multiple buildings on site - rent is house and a stall in garage I told them I’d clear out for parking in winter. Shortly after they move in - they ask me to clear out the entire garage so they can stop paying rent on their storage unit. No extra $$ offered - just expect me to move my junk so they can store theirs free).
I mean the way I look at it - they are living in a house for half of what the mortgage would cost on just the house and treating it like their own (the entire property). It’s clear simply talking isn’t working - hate to be the asshole here - but sometimes nothing else gets the point across.
