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Old 09-25-2005, 03:49 PM   #1
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Any landlords here?

DH and I are going to go look at a house for sale tomorrow. We are thinking about buying it and fixing it up and living in it till we find a house we want to settle into. We will either rent it out later or sell it for a profit.

Any landlord tips will be appreciated.

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Old 09-26-2005, 12:19 AM   #2
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Do you plan on using a property management co? Also try to find out if your city or county has a class for new landlords. My city does, check out their website too, they could have the training materials available for free download. (the class was free too) Our city gears it to help you find tenants that will be law abiding and not turn your rental into a druggie houese. It also covered a list of most common violations.

Oh, when you have your house inspector look at the property, make sure she/he knows it will be a rental, then they can tell you what needs to be done (if anything) to make it up to code. PM me if you have anymore questions. Good luck!!
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Old 09-26-2005, 02:09 PM   #3
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Sizz, are you thinking about buying a property for income or to actually live in (if it's okay to ask a few questions to get a better picture)?

When you mention fix it up - are you looking for (I think it's called a flip flop) - a fixer-upper at low cost & doing major renovations (out of pocket) & put it back on the market? If I'm not mistaken, think there was a law where you had to live in the home for a certain amount of time/years. Check the laws in your state or call a realtor.

Also, keep in mind, if you want to find a home to live in & you rent the property rather than selling it - you might have to (depending on your finances) need to carry two mortgages, property taxes, & apply for another loan. You will also need to take into consideration the property taxes you will be paying on a property you are not residing in.

Re rental agreements/landlord:

You can go to any stationery store & buy pre-printed rental agreements. Could use it as a guideline & add your own stipulations. Be sure to ask for references & follow up on potential renter's credit history as well. (If a renter can't come up with the rent - you may have headaches later on as well as damage to your property.) Be sure to ask for deposits etc. When interviewing, trust your best instincts.

If you have an attorney, you can let them handle it for you & look over all agreements & advise you.

My understanding is, for a fee, a realtor can take care of rentals, etc., without your having to be directly involved.

Weigh out all the pros & cons, & see if you have a good shot at coming out ahead. I wish you good luck.
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Old 09-26-2005, 02:38 PM   #4
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Another thought:

Buy a bigger better house (i.e. more bedrooms/baths, etc.) & rent the rooms out. Or - buy some ocean-front property & turn it into a Bread & Breakfast.
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Old 09-26-2005, 02:38 PM   #5
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Quote:
Originally Posted by mish
If I'm not mistaken, think there was a law where you had to live in the home for a certain amount of time/years. Check the laws in your state or call a realtor..
I don't know of any law that makes you live in a home. After all, lots of people own 2, 3 and even more homes.

But there is a law concerning the deductibility of a capital gain on sale of real estate that requires you to establish that it was your pricipal place of residence for some period of time. Maybe that's what you are thinking of.

I would highly suggest consulting an attorney to draw up the contracts and advise you on the variety of laws that come into play when leasing property.
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Old 09-26-2005, 02:45 PM   #6
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Originally Posted by jennyema
I don't know of any law that makes you live in a home. After all, lots of people own 2, 3 and even more homes.

But there is a law concerning the deductibility of a capital gain on sale of real estate that requires you to establish that it was your pricipal place of residence for some period of time. Maybe that's what you are thinking of.

I would highly suggest consulting an attorney to draw up the contracts and advise you on the variety of laws that come into play when leasing property.
I highly suggest an attorney as well. In my neck of the woods real estate is at its prime. There was a time when people were buying up properties just to resell & not to live in. Again, check and see what the laws are in your area.

The capitol gain thing - think that applies to when you sell your home & move into a rental, depending on profit. I asked about this, & I think that's my understanding. Check with tax laws as well.
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Old 09-26-2005, 02:56 PM   #7
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Quote:
Originally Posted by SizzlininIN
DH and I are going to go look at a house for sale tomorrow. We are thinking about buying it and fixing it up and living in it till we find a house we want to settle into. We will either rent it out later or sell it for a profit.

Any landlord tips will be appreciated.
Try this site....http://www.johntreed.com/realestate.html

A lot of free help there!
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Old 09-26-2005, 03:13 PM   #8
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A capital gain on real estate doesn't depend on moving into a rental.

It depends on the house being sold being your principal place of residence -- owned by you and occupied for 2 out of the five years prior to the sale.

The first $250,000 of the capital gain is tax free. You pay capital gains tax on any profit above 250k (500k if married and filing jointly).

So SIZZ would have to pay tax on the entire capital gain if they do not own and occupy the house for 2 out of the 5 years prior to selling it.
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Old 09-26-2005, 03:26 PM   #9
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Sizz, if I may say - on a personal note, as part of our little "community" - I applaud you. Know you've been going through some emotionally tough times; & looking toward the future, is a good sign. Kiddo, you put the last house up for sale & did everything you needed to do. I know you will be successful. Great support system here as well.
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Old 09-26-2005, 11:26 PM   #10
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Thanks everyone..........and thanks Mish for the kind words. Well we put a bid in and will hear tomorrow if its been accepted or if we have to up the bid......someone else also put a bid in on it. Its a total fixer upper....about the only thing we wont be tearing down is the fireplace.....just refinishing that. I hope we can get it'll occupy my time and get me focused on something else. I'll let you all know. We'll live in it till we find a house we are wanting to settle into. Thanks again everyone!
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