many of my clients in a similar situation as yours have opted for becoming a landlord although they have never before been one, and it is not as easy as it sounds...
It may take a while for you to find the right renter, good credit, good background check, good income,
you want to make sure that they not only can afford your rental property but also will take care of it and pay the additional fees of electric, gas etc.
You definitely should try to refinance to a lower interest rate, and to make it acceptable to a renter you may want to make sure that it is inviting and pretty, so a bit of paint will go a long way, and new carpeting that is easy to clean like some of the berber type is a good idea, you can include a cleaning fee for the home at move out, and you will get a security deposit usually one month rent. You also want to make sure what to do if your renters have pets, what do you accept and what do you not accept, if you do accept pets, you can ask for an additional pet rent, or an additional pet
security deposit... If you have never been a landlord, you may want to list your rental with an
experienced Realtor in your area, familiar with the rental market, so that you are asking for the right rent, and also to have the renter sign a detailed lease agreement.... That agent will then also
take care of getting a fully filled out application, and will run a credit and back ground check on
your behalf.... And who will take care of repairs? Would you want to get a Home warranty, and the
tenants pay the service call fee only if anything breaks down, or do you want to take care of repairs
as they come on?
And before you rent, where do YOU go?
All the best to you, if you need the recommendations for a local Realtor feel free to contact me and
I will be delighted to forward some good ones in your area to you.
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com Check out my website at htttp://www.tinyurl.com/MeetEdithHere
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
You purchased in 2006, which the market was almost at it's highest! So to only be taking a $10-$15k, that's not bad! I will say inventory is LOW, so sellers are able to stand firm with pricing at this time. If your home is located in a neighborhood and you're seeing many foreclosures etc. Most likely that neighborhood is going to become a "rental" community in the near future. Once this happens your value will slowly decline. So the real question, sell now and come out on top. Or sell later and "break even." With interest rates at record low, there are many buyers running around and with the right marketing etc. you should see a fast return for your property. I would be more than happy to give my professional opinion on your home value.
Contact a Realtor, or you can contact me and I can send you information on market value and comps. If you want specifics, we can arrange a site visit to be able to better determine what you may want or need to do.
Michael Bellaire, Broker, ABR
Well here it goes, if and when you rent your current property, my first question to you is what are YOU going to do?
You have to have a certain percentage of equity in your home for the bank to consider the income
for giving you another loan for another property.... and yes refinancing is a great idea jump on that I would say.....And then you truly need a local Realtor familiar with rental homes, so that you do not
think you can rent the property for 1150 $ a months when you really can only rent it for 800 or so, I am making these numbers up just to clarify, you still have to pay insurance on the property, taxes and
any repairs, BUT MOST IMPORTANTLY WHAT IF YOU DO NOT HAVE A RENTER AND THE PROPERTY STAYS EMPTY FOR 6 MONTHS BEFORE A NEW RENTER COMES ALONG?
It is not easy to be a landlord if you have never been one.... but you really need to sit down with an
experienced area Realtor to put all the numbers and all the thoughts in front of you so that your
decision will be a well educated one.
At the end you may have a better chance to sell the property and come out even, with luck....
But I do not know what you intend to do thereafter, nor how the market is in your area. If you need
the recommendation of a Realtor to assist you, let me know and I gladly provide you with one.
Feel free to contact me or get to me via my website below.
EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com
@Properties Northshore - offices in Chicago, Evanston, Winnetka, Highland Park and Lake Forest
30 Green Bay Road Winnetka Il. 60093
or sign up for home searches on my website http://tinyurl.com/MeetEdithHere
Have a most wonderful Day :)
i recommend that you get 2 to 3 good agents with more than five years experience to complete an ERC BMA for you. Interview the agents thoroughly and ask for their opinions on your questions. Be upfront and realistic about what you can or cannot do.
Should you decide to rent your house, again, interview several rental agencies with good track records and reputations. You will also want to check with your homewoner's insurance agent as to how renting or lease-purchasing the property will affect your insurance.
Don't forget to interview lenders, too. All lenders are not alike.
You did not mention as to why you are vacating your house. Have you been relocated? Are you taking a new job in another city? There are financial programs and options available to transferees and you will want to investigate those as well.
You want to explore your options and get the best possible professional advice from different professionals with different companies.
There are buyers out here buying and renters looking for homes to rent. I do suggest putting the house on the market before school starts as Tiption County has good activity before school begins.
If I can be of further assistance please feel free to contact me at 901.335.9232. I am happy and available to assist you in any way I can.
Kathleen Greene Mitchell
As a broker who has managed property for 20 years, I would recommend maximizing your appeal to the broadest market possible by putting the property up for sale AND for lease. You're right, you will probably get a renter first. but if you screen them properly and thoroughly, you'll at least get someone who will take care of the property and provide enough to cover the debt service. I do not recommend lease/purchase arrangements, as they are fraught with risk for both tenant and owner. Homes with lease/purchase options are usually sought out by people who have either no credit or horrible credit because there is no other way they can get a house. Once again, this is where thorough vetting procedures pay off. This includes credit and background checks, as well as criminal records, most of which are public record. A qualified property manager has these tools at their disposal. Many of my owners have had to make the same decision about their property in the past two years, so you are not alone. But once you commit to renting, be resolved that you will be renting out the property for a long time, as it will be several years before appreciation rates move upward in this current market.
You need to have a comparable market analysis done, this will give you an idea of a current sale price range. That may also help you in your decision to sell, rent or re-finance. Depending on LTV and other conditions, doing a re-fi may or may not be possible, and there are also some costs involved that have to be dealt with. There are Buyers out there, and price and condition will determine value and ability to sell. Repairs sound fairly normal and perhaps reasonable, but should be reviewed to determine if that's it or if more is involved and what the potential cost may be.
A straight sale may very well work, a lease purchase may be possible, and of course a rental may be a choice as well. What is your primary choice. I'm talking with buyers and potential buyers and sellers all the time, and your plans or needs are what count as a seller. If you like, feel free to contact me and I'll do what I can to assist you.
Michael Bellaire, Broker, ABR
Great question! I am a real estate professional in the Memphis area and I would love to run the comps on your home and come talk with you about what it's worth. There is a chance you could get out of this house without taking a loss, the Tipton county area has a lot of rentals, so there would be some competition. Also, you have paid in quite a bit since you purchased, and I think we might be able to pull what you owe. You may not make a large profit, but I always tell my sellers that they might take a hit on this end, but in this market, they will make it up on the back end. You can get a great deal buying a house these days. Please give me a call and we can talk about your options. I will run a Market analysis and come sit down with you, tell you what I think we can pull, and if you would still like to rent, I can set you up with a rental company.
If I were in your shoes, I would keep it, fix it up a little (tax deductible) and rent it out for a small loss, (also tax deductible).
You only need to re-coup $35,000; that will only take about 5 years at a 5% appreciation.
Talk to your Tax Advisor.