Should I rent-out or sell my house?

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JTausTX said:   startupdad said:   Update:

Here's what I did:

I payed down the principal to get rid of PMI and I also re-amortized to get the payment even lower. Current Payment which includes property taxes and insurance is $1750. I hired a property management company for 8% and they immediately got swamped with applications. Got a renter for $2150.

Income: $2150
Costs: $1750 + $50 (lawn care) + $172 (management fee)

Result: $178 cash flow positive per month, which I figure will easily cover any maintenance.


Green for update! Does the management company take care of everything for you? 8% sounds high.


Yeah they take care of everything to the point that I don't have to think about it, just receive reports & money from them. The fee is 8% and they don't charge for the turnover of finding renters, or anything else for that matter.

What state is it and who are you using that you get 8% with if you don't mind sharing? I've found a couple that are both 10% and have a bazillion fees.

startupdad said:   Update:

Here's what I did:

I payed down the principal to get rid of PMI and I also re-amortized to get the payment even lower. Current Payment which includes property taxes and insurance is $1750. I hired a property management company for 8% and they immediately got swamped with applications. Got a renter for $2150.

Income: $2150
Costs: $1750 + $50 (lawn care) + $172 (management fee)

Result: $178 cash flow positive per month, which I figure will easily cover any maintenance.


Wow. Is it really this thin of a margin that LL have on their property - renting. If the house is not rented for even a month in a year, the cash flow is negative. Of course the property will appreciate, but the capital gains will be taxable since its not a primary residence.



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