Thinking of Renting out a Property.

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Square Obsidian
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Thinking of Renting out a Property.

Postby Square Obsidian » Sun May 17, 2015 5:31 pm

Hey guys, its been a while, have some things to update and will do that soon, but for now I just have a few questions.

I'm currently 24, trying to get an upgrade on life. Just recently got offered a job that makes pretty good money. (Good money by my standards as I've not earned any degrees, yet and it's based on experience.) The only thing is it's about 50 miles roundtrip to and from work. Haven't started the job yet, but I'm expecting to enjoy it as I've heard nothing but good things from people who work there or have worked there in the past. So, what I'm thinking about is renting an apartment that's quite literally next to my work. The price is decent and the amenities are amazing. Not to mention I don't get very good milage on my Escape and I hate driving in general. A little less than a year ago I purchased a home for myself. Thanks to my obsessive relationship with my credit score I was able to do so on my own. The property, albeit small at only about 600 sqr. ft. is perfect for someone like me. I purchased this home knowing it would not be my forever home but rather something I could change into a rental property down the road and now, in my eyes, that time may be coming up sooner than I thought.

So, I'm looking for general advice, or comments on what you guys think I should do.

If I like the job, is it worth moving closer to say on gas and put the property up for rent?
Do any of you have advice for someone new to this sort of thing?

Here's just some information to help you guys get a better understanding of my situation.

My current home:

Is about 600 sqr. ft.
My monthly mortgage, including insurance and taxes is only about $312 a month. I've been paying about $412 a month to pay it down faster and still have enough money to put into my savings.
There is no gas.
The Electric and Water bills (including trash,) add up to less than $100 in the warmer months.
I also pay around $45 for internet each month.
The drive to my new work is about 25 miles, but due to it being in the middle of the city it takes about 45 mins.
Winter here sucks and they don't really care to clear up the roads.

The apartment I'm looking at:

Is between 500 and 800 sqr. ft. depending on a studio or 1 bedroom.
The rent is between $400 and $600 depending on the size.
> I still need to find out what utilities I'd have to pay.
Free high speed internet.
Within 500 ft. of my new job.
The have some pretty neat amenities like a pool, tennis/basketball courts, dog park, fitness center and even a 76 seated theatre.
Pet friendly with a one-time pet fee of $150. (I do have one, hairless cat.)

I've looked into basic pros and cons of renting and I don't think I want to sell my home.

So..what do you guys think?
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Vermonster
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Re: Thinking of Renting out a Property.

Postby Vermonster » Sun May 17, 2015 7:32 pm

From my experience with my wife and all the moving we have done, I highly suggest waiting 6 months after you new job before committing like that.

Moving is expensive as it is, and you have the added risk of needing to find someone to rent your place. If things don't work out, you might be royally screwed.
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Gamma
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Re: Thinking of Renting out a Property.

Postby Gamma » Mon May 25, 2015 8:22 pm

I'd definitely wait about 6 months to see how your job goes as above poster said. It's a risk renting to people who might be problem tenants and not pay for anything. Maybe consider buying a fuel efficient car for now? I bought a Honda civic used when I got a new job that was about 50 miles from home.

MemberSince99
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Re: Thinking of Renting out a Property.

Postby MemberSince99 » Tue May 26, 2015 8:25 am

Wow your whole mortgage is less than my property taxes alone. Even once I own my place clear, I'll still pay more to continue to rent it from the City than your mortgage is.

Like these guys said, I'd wait. I've taken jobs I was exicted to start and in a couple of months I was already looking for another job. You never know until you get in there because they don't tell you about the bad points in the interview. And you never know who you will get to rent your house either.



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