cougarguard.com — unofficial BYU Cougars / LDS sports, football, basketball forum and message board  

Go Back   cougarguard.com — unofficial BYU Cougars / LDS sports, football, basketball forum and message board > non-Sports > Home Improvement and Real Estate

Reply
 
Thread Tools Display Modes
Old 11-27-2006, 03:07 AM   #1
UteStar
Senior Member
 
UteStar's Avatar
 
Join Date: Aug 2005
Posts: 1,817
UteStar is an unknown quantity at this point
Default Investment properties...

I am just curious as to who on the board has investment properties. Are you renting them out and if you are, are you able to cover your mortgage costs or do you have to pay out of pocket to meet the mortgage needs? How have you liked having it in terms of renters and time spent caring for the property?
UteStar is offline   Reply With Quote
Old 11-27-2006, 03:40 AM   #2
bluegoose
Senior Member
 
bluegoose's Avatar
 
Join Date: Sep 2005
Location: Northern California
Posts: 2,919
bluegoose is on a distinguished road
Default

Not I, but my dad has 7 or 8 investment properties spread around California and Utah. So far he has been able to cover mortgage payments with the rent. He rents out a couple of the houses to students and is able to cover rent fairly easily with them. So far he has not been burned too badly with tenants trashing the place.

Some of my friends here in Northern California are not able to cover their mortgage with rent payments, but the're okay with that and feel like it comes as part of the investment. Not a huge deficit, maybe $100 per month.

On a recent cruise, my folks were speaking with a real estate agent from Dallas. They said that the current Dallas market (2 or 3 months ago) was such that you could buy a decent sized house for ~$150K and rent the same house for $1000-$1200 per month. I've never checked to verify, but with a modest down payment you could do fairly well under those circumstances.
bluegoose is offline   Reply With Quote
Old 11-27-2006, 01:09 PM   #3
Surfah
Master
 
Surfah's Avatar
 
Join Date: Jan 2006
Location: F'burg, VA
Posts: 3,211
Surfah is an unknown quantity at this point
Send a message via AIM to Surfah Send a message via MSN to Surfah
Default

Check out HUD homes. These are FHA foreclosures and they are popping up everywhere. In Utah there are very few on the market and this creates a ton of competition. HUD homes in Utah often sell at auction for $20K more than the government appraisal. But look next door in Colorado and there are around 2000 homes on the market up for auction. You can get into something at or below the government's appraisal fairly easily. Speak with a real estate agent that is licensed to bid on HUD homes and they can fill you in. It's a great way to pick up an investment property.

There are going to be more and more foreclosures coming on the market with all of these exotic loans. Most brokers can get you on a mailing list for these types of homes. Often times they'll have the homes broken down into groups representing each step of the foresclosure process.
__________________
Ernie Johnson: "Auburn is a pretty good school. To graduate from there I suppose you really need to work hard and put forth maximum effort."

Charles Barkley: "20 pts and 10 rebounds will get you through also!"
Surfah is offline   Reply With Quote
Old 11-27-2006, 01:48 PM   #4
MikeWaters
Demiurge
 
MikeWaters's Avatar
 
Join Date: Aug 2005
Posts: 36,363
MikeWaters is an unknown quantity at this point
Default

I would think that is about right when it comes to Dallas. Danimal is renting a house in Dallas, and the difference between rent and mortgage is not that much, I think.
MikeWaters is offline   Reply With Quote
Old 11-28-2006, 04:23 AM   #5
danimal
Senior Member
 
danimal's Avatar
 
Join Date: Apr 2006
Location: Your mom's house
Posts: 588
danimal is an unknown quantity at this point
Default

Quote:
Originally Posted by MikeWaters View Post
I would think that is about right when it comes to Dallas. Danimal is renting a house in Dallas, and the difference between rent and mortgage is not that much, I think.
That's right. I think that our rent is roughtly equivalent to what a mortgage payment would be. But you also have to add in property tax, which seems to be pretty high here. Our landlord told us that it takes almost half of our rent to pay the property tax on the house.
__________________
Tobias: You know, Lindsay, as a therapist, I have advised a number of couples to explore an open relationship where the couple remains emotionally committed, but free to explore extra-marital encounters.

Lindsay: Well, did it work for those people?

Tobias: No, it never does. I mean, these people somehow delude themselves into thinking it might, but...but it might work for us.
danimal is offline   Reply With Quote
Old 11-29-2006, 04:56 AM   #6
UteStar
Senior Member
 
UteStar's Avatar
 
Join Date: Aug 2005
Posts: 1,817
UteStar is an unknown quantity at this point
Default

Texas has some very reasonable housing prices but your taxes are brutal. In Utah, a 3000 square foot home on the east bench has property taxes somewhere in the $2-3,000 range per year. I believe Texas is probably triple that.
UteStar is offline   Reply With Quote
Old 01-01-2007, 05:52 AM   #7
cougjunkie
Senior Member
 
cougjunkie's Avatar
 
Join Date: Jan 2006
Location: Utah
Posts: 5,741
cougjunkie is an unknown quantity at this point
Default

Rental properties in my neighborhood are going for about 1400-1500 a month. IF you got in when they first started building the subdivision your loan amount is about 220k. So you may have about 100 a month out of pocket, which is not to bad. Most rental properties do not cash flow at first. Unless you do rent by the room to students and things like that.

My buddy owns a condo in Orem right by UVSC. It is 4 bedrooms, 2 large bedrooms 2 smaller ones. He puts 2 girls in each of the large rooms and 1 in each of the small ones. 300 each for a shared room, and 350 each for a private room.

It has been rented for 3 straight years now and he bought it for 150k. His payment is about 1000 and he makes about 1900 on it. This is pretty rare, but when you rent by the room you have a better chance of having it cash flow.
__________________
LINCECUM!
cougjunkie is offline   Reply With Quote
Old 01-02-2007, 02:36 AM   #8
Cali Coug
Senior Member
 
Cali Coug's Avatar
 
Join Date: Dec 2005
Posts: 5,996
Cali Coug has a little shameless behaviour in the past
Default

Quote:
Originally Posted by danimal View Post
That's right. I think that our rent is roughtly equivalent to what a mortgage payment would be. But you also have to add in property tax, which seems to be pretty high here. Our landlord told us that it takes almost half of our rent to pay the property tax on the house.
Yes, but you also get interest deductions, and if you live in it for 2 years you get further tax benefits.
Cali Coug is offline   Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 04:28 PM.


Powered by vBulletin® Version 3.8.2
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.