Random Thoughts XXIX

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#11,335
#11,335
Aavoxx said:
Thoughts? Pros? Cons? Complaints?
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I like it. In my case I pay rent and if it is on time 10% of every month's rent goes straight into my down payment. The owner will not sell the house while I am in it and I can buy it at any time. Anything under $50 I pay to repair. Anything over $50 the owner deals with. Open ended contract that I stay as long as I want. The down part is I had to put a lot of money down and if I decide to not buy I lose all that money.
 
#11,337
#11,337
blupotato said:
I like it. In my case I pay rent and if it is on time 10% of every month's rent goes straight into my down payment. The owner will not sell the house while I am in it and I can buy it at any time. Anything under $50 I pay to repair. Anything over $50 the owner deals with. Open ended contract that I stay as long as I want. The down part is I had to put a lot of money down and if I decide to not buy I lose all that money.
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How much did you put down?

Lease-to-own is on my list of possibilities to do with my house if I buy another. I'm 5 mins from UT, so I could easily rent to UT students, but... I would have to be very selective.

I'd also like to hire a rental management company, but I don't think I'd net any profit. I could probably squeeze $150 net a month out of my house in rent, and the company would charge about that it seems.
 
#11,338
#11,338
Thrasher865 said:
How much did you put down?

Lease-to-own is on my list of possibilities to do with my house if I buy another. I'm 5 mins from UT, so I could easily rent to UT students, but... I would have to be very selective.

I'd also like to hire a rental management company, but I don't think I'd net any profit. I could probably squeeze $150 net a month out of my house in rent, and the company would charge about that it seems.
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I have some friends using a rental company. They're losing money.

The condo I was looking at wanted 3,000 down.
 
#11,342
#11,342
Aavoxx said:
I don't see how people make money renting homes at all.
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My mortgage is ridiculously cheap. I would probably wind up losing money in turnover, maintenance and repairs, though.

Keep in mind, though, unless you are in the first several years of your mortgage, you are building equity even if you break even on your rent. If you own the house outright, then it's all profit, too.

I don't think many people make money on rentals if the bank owns 90% of the house.
 
#11,343
#11,343
Thrasher865 said:
My mortgage is ridiculously cheap. I would probably wind up losing money in turnover, maintenance and repairs, though.

Keep in mind, though, unless you are in the first several years of your mortgage, you are building equity even if you break even on your rent. If you own the house outright, then it's all profit, too.

I don't think many people make money on rentals if the bank owns 90% of the house.
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True enough.
 
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