View Full Version : Rent or Cash Out?
I have an opportunity to rent out my doublewide to a hot chick going through a divorce. She seems financially dependable and really wants the place. Just as that's going on, yesterday I get this lady showing up at my door of my regular house who tracked us down by pulling the sale/tax info from the place. She owns some land on the same block and her daughter and son in law want my place and are preapproved for a loan. I'd make way more than I paid for it and be done with thehassle of fixing it up, etc. I know after I sell it, it will continue to appreciate, but it would be nice to make some big cash. On the other hand, I can make $500 a month and keep it.
meatpile
09-30-05, 11:11 AM
Sell it.
outofstate
09-30-05, 11:12 AM
I have an opportunity to rent out my doublewide to a hot chick going through a divorce. She seems financially dependable and really wants the place. Just as that's going on, yesterday I get this lady showing up at my door of my regular house who tracked us down by pulling the sale/tax info from the place. She owns some land on the same block and her daughter and son in law want my place and are preapproved for a loan. I'd make way more than I paid for it and be done with thehassle of fixing it up, etc. I know after I sell it, it will continue to appreciate, but it would be nice to make some big cash. On the other hand, I can make $500 a month and keep it.
If you owe on it.....cash out. If its your free and clear.....rent it. :twocents:
Sell it.
That's the way I'm leaning. Less headaches.
If you owe on it.....cash out. If its your free and clear.....rent it. :twocents:
It's free and clear. Can you explain your logic?
I have an opportunity to rent out my doublewide to a hot chick going through a divorce. She seems financially dependable and really wants the place. Just as that's going on, yesterday I get this lady showing up at my door of my regular house who tracked us down by pulling the sale/tax info from the place. She owns some land on the same block and her daughter and son in law want my place and are preapproved for a loan. I'd make way more than I paid for it and be done with thehassle of fixing it up, etc. I know after I sell it, it will continue to appreciate, but it would be nice to make some big cash. On the other hand, I can make $500 a month and keep it.I say cash out. The hot chick could stay a month or two and then move on. Then you'd have no renter and the buyers may be gone too. Not to mention "seems financially dependable" does not mean that she will be a good paying renter. He husband could have left because she was spending all his money. Heck, I make quite a bit of money but I'm broke as a joke. So I'm sure I seem financially dependable but....... JMO
hot chick and double wide dont go together. I think sadic is full of shit again.
meatpile
09-30-05, 11:17 AM
That's the way I'm leaning. Less headaches.
.
Take that cash and invest it in something that doesn;t require money / time to maintain. :twocents:
buy some big tires, new axles and springs for your jeep!
chipshot
09-30-05, 11:19 AM
.
Take that cash and invest it in something that doesn;t require money / time to maintain. :twocents:
you mean like an investment that could more easily lose value?
.
Take that cash and invest it in something that doesn;t require money / time to maintain. :twocents:
Investing is a hassle. That's one of the few things stopping me. There aren't that many safe investments with a decent yield, and nothing right now that's comparable to the appreciation I'm getting on this place, so if I sell it, sure, maybe I'll take care of a couple of things on my primary house that I've been hesitant to spend money on, but after that, I'm going to pay the tax on the profit and stick the money in the bank. It's nice to have that kind of cushion, but not financially smart. Maybe roll it into lakefront land. Maybe I should talk to an accountant.
meatpile
09-30-05, 11:29 AM
you mean like an investment that could more easily lose value?
Depends on the time frame. Also, no need to fix / paint / pay property taxes on other investments. (see - your bathroom.)
But hey - do whatever. Investments that I have to either pay for or work for to keep them from losing value are not my preference.
In Sadic's case, if he bought it to flip, now's his chance. Having a lady arrive unsolicted at his door with $$ is something he can't turn down.
you mean like an investment that could more easily lose value?
brylcream?
gottalaff
09-30-05, 11:32 AM
brylcream?
a little dab'll do ya
builder
09-30-05, 11:34 AM
How much are you asking? How much land are you talking about. The trailer's cost is negligible considering it is a trailer and worth the same as the furniture inside.
Depends on the time frame. Also, no need to fix / paint / pay property taxes on other investments. (see - your bathroom.)
But hey - do whatever. Investments that I have to either pay for or work for to keep them from losing value are not my preference.
In Sadic's case, if he bought it to flip, now's his chance. Having a lady arrive unsolicted at his door with $$ is something he can't turn down.
Either option will be better than having it sit there needing stuff. If I rent it, at least having someone live in it will keep it at a certain level of maintenance, and I'd only have to worry about repairs, but there are taxes and all that every year. Bottom line is the $500+ a month I may get in rent, even if it's cash is not going to all end up in my pocket when it's all said and done, and it's not exactly life changing money to start with. It's basically a way to keep and let the place appreciate without having to pay to keep it. Niblock just bought 180 acres right near the place and they're widening Hwy 49 up to Mt Pleasant, so it's like it's a race between when the value of the place really explodes or the overall real estate bubble bursts...
Even when I'm not physically working on the place, it does somewhat stress me out knowing it's there and that I need to finish it. It would be nice to pare down my maintenance needing things, especially since I love my motorcycles and drive shitty cars.
outofstate
09-30-05, 11:44 AM
It's free and clear. Can you explain your logic?
If you owe money on it you are paying out interest every month....if its paid for obviously you arent. So, being paid for all income from rent goes to up keep, taxes/insurance etc. with a reasonable amount of profit. Plus you said that the property value would only increase. You can always sell it later since increasing values reflect that people want/need that property. (and, at least in ohio, all repairs on a rental are tax deductible)
If you had owed money on it I figured that the interest being paid along with the other expenses wouldn't justify financially coming out ahead.
But what do I know.......
c'mon meat...sadic want to play the role of dego land lord. it would be a dream come true.
Coach Micool
09-30-05, 11:54 AM
If you sell it, you're gonna have to pay capital gains.
Income per month is gravy, being free and clear, and you still own the property that, in the future, will more than likely sell for more so you get that PLUS what you get every month now, less expenses to fix up.
Expenses are covered thru the rent to you, tax shelter of sorts also, and fixing up with rent paid makes property sell for even more down the road.
It shows as an asset on your net worth balance sheet, and you can borrow money against it at lower int rate and pay off other debts if you have any.
There is no better investment than real estate, considering the returns versus 'safety' and 'stabilization'.
If you want the cash now, borrow against it with less of a payment than the rent (@ a 10-15% vacancy and collection loss figure), and take approximately 75-80% of the rent to pay back loan payment. In other words, borrow the cash- with a payment of 75-80% of what the rent brings.
Don't borrow the money on it until you have taken the rent and 'put into' it what maintenance it will require during the length of the loan you take out on it.
gridfaniker
09-30-05, 12:02 PM
Either option will be better than having it sit there needing stuff. If I rent it, at least having someone live in it will keep it at a certain level of maintenance, and I'd only have to worry about repairs, but there are taxes and all that every year.
yeah, it's not like there has ever been a renter who's done damage to the place they've rented. you're absolutely assured that this hot chick is gonna leave the place in pristine condition.
does your neighbor still have the killer dog? if so, I'd be worried about this chick inviting the pooch over for the occasional clam-and-Skippy feast. then you have those unsightly peanut butter stains on the carpet.
If you sell it, you're gonna have to pay capital gains.
Income per month is gravy, being free and clear, and you still own the property that, in the future, will more than likely sell for more so you get that PLUS what you get every month now, less expenses to fix up.
Expenses are covered thru the rent to you, tax shelter of sorts also, and fixing up with rent paid makes property sell for even more down the road.
It shows as an asset on your net worth balance sheet, and you can borrow money against it at lower int rate and pay off other debts if you have any.
There is no better investment than real estate, considering the returns versus 'safety' and 'stabilization'.
If you want the cash now, borrow against it with less of a payment than the rent (@ a 10-15% vacancy and collection loss figure), and take approximately 75-80% of the rent to pay back loan payment. In other words, borrow the cash- with a payment of 75-80% of what the rent brings.
Don't borrow the money on it until you have taken the rent and 'put into' it what maintenance it will require during the length of the loan you take out on it.
We have found a subject that Coach knows something about! :trophy:
Still have to factor in potential inconvenience of dealing with a renter, though.
chipshot
09-30-05, 12:04 PM
Still have to factor in potential inconvenience of dealing with a renter, though.
you gotta do something for your investment
meatpile
09-30-05, 12:06 PM
you gotta do something for your investment
no you don't.
chipshot
09-30-05, 12:08 PM
no you don't.
if you want it to be an almost sure fire bet like real estate you do
sadic1, you can go through a rental agency that for 10% of rent per month will handle everything as far a problems go. if something breaks, they'll just take that money out of the rent paid to them and give you the rest. i've got a buddy doing that right now and he said it works out pretty good for him.
sadic1, you can go through a rental agency that for 10% of rent per month will handle everything as far a problems go. if something breaks, they'll just take that money out of the rent paid to them and give you the rest. i've got a buddy doing that right now and he said it works out pretty good for him.
I've heard of that, and it does sound pretty good, but it sort of locks you into declaring the income, I'd think.
chipshot
09-30-05, 12:12 PM
I've heard of that, and it does sound pretty good, but it sort of locks you into declaring the income, I'd think.
Don't you have any "friends" who can do this for you?
meatpile
09-30-05, 12:16 PM
if you want it to be an almost sure fire bet like real estate you do
Define 'almost sure fire bet'.
chipshot
09-30-05, 12:22 PM
Define 'almost sure fire bet'.
Realestate goes up in value if you have half a brain to determine where to purchase. He already stated he wasn't too iterested in other types of investments. I don't see how his land on the outskirts of a growing area can lose value. I'm not going to claim I know squat about investing, but I've never known anyone to lose with this level of involvement.
Coach Micool
09-30-05, 12:25 PM
We have found a subject that Coach knows something about! :trophy:
Still have to factor in potential inconvenience of dealing with a renter, though.
I have done a lot of things since high school and worked full time as a tax mapper and surveyor while in college. That lead to being a real estate appraisal manager for a county tax office and then tax administrator for a county.
Since the gumment is a fukd up place to work, actually if you have any brains, and you have to deal with politicians to jeep your appointed job- and most of them are black hole stoopid and phonies,
I left gumment a few years ago...
and now work for an international firm appraising commercial real estate. So, yeah, I know a little about it. Also, being a tax administrator and sitting on legislature commities for the state of NC, I might know a little bit about gumment. Also taxation, budgets for gumments, expenditure, requirements, no-bid and bid contracts (since I had to write them also), etc.
I also didn't like having to foreclose on somebody's farm cause they could no longer afford to pay the taxes because of the industry's problems, and then sign a damn check (written with te essential proceeds) for free money to somebody or have to approve a social program budget for somebody that didn't derserve it and milked the fukdup 'system'.
Need to know anything about appraising the BOA stadium, the RBC center or an embassy overseas?
It's really tough to appraise real estate in a country like England. It's all leases, sandwich leases and subleases (leasehold appraisals) because ulimately a duke or king(queen) owns all the property.
meatpile
09-30-05, 12:26 PM
Realestate goes up in value if you have half a brain to determine where to purchase.
So do most investments.
Just sayin'.
chipshot
09-30-05, 12:28 PM
So do most investments.
Just sayin'.
true, but realestate just seems more "real" for us idiots
Coach Micool
09-30-05, 12:30 PM
So do most investments.
Just sayin'.
But land is FINITE. You do the math. And I've never seen land (other than say, a toxic spill on property or something- or a hurricane completely take land away), depreciate in value. 'Investments' other than real estate are moslty uninsurable and also can go south badly (risk, duh!)
mathmajors
09-30-05, 12:33 PM
Tell the hot chick you'll let her rent it for $400 if she'll give you a blow job once a week.
But land is FINITE. You do the math. And I've never seen land (other than say, a toxic spill on property or something- or a hurricane completely take land away), depreciate in value. 'Investments' other than real estate are moslty uninsurable and also can go south badly (risk, duh!)
You need to read up on the real estate ‘bubble.’
Coach Micool
09-30-05, 12:37 PM
You need to read up on the real estate ‘bubble.’
I've never heard a Bubble?
hehe, still, way less risk. And usually short term, also.
Tell the hot chick you'll let her rent it for $400 if she'll give you a blow job once a week.
I could be banging her and still getting full price. Unfortunately, strange pussy is a really bad investment.
Coach Micool
09-30-05, 12:44 PM
I could be banging her and still getting full price. Unfortunately, strange pussy is a really bad investment.
He didn't mention pussy.
But yeah, a really really bad investment especially if you are married.
He didn't mention pussy.
But yeah, a really really bad investment especially if you are married.
What, eatin' ain't cheatin'? Bill?
meatpile
09-30-05, 12:47 PM
And usually short term, also.
As are losses in equities (http://finance.yahoo.com/q/bc?t=my&s=VFINX&l=on&z=m&q=l&c=VPMCX%2C+VWELX)
meatpile
09-30-05, 12:49 PM
Unfortunately, strange pussy is a really bad investment.
I think someone should've told my neighbor.
Coach Micool
09-30-05, 01:20 PM
As are losses in equities (http://finance.yahoo.com/q/bc?t=my&s=VFINX&l=on&z=m&q=l&c=VPMCX%2C+VWELX)
All true.
But the most important fact about real estate and investing is you can use somebody else's money.
If you don't know what this means, and I've not got the time to explain it now, I'm writing a report, take a real estate class. It's the first answer to the first question in Real Estate 101.
If you're getting into real estate now you have to look hard to find something because of the already high real estate prices. It's harder to find something to cash flow. If you want to hold onto that piece of real estate for a long time and not "flip" it, as long as you break even you are doing well.
I think someone should've told my neighbor.
Tell him now. It's never too late to learn for next time.
slydevl
09-30-05, 02:13 PM
Tell him now. It's never too late to learn for next time.
Might I recommend putting a sign in his yard?
Coach Micool
09-30-05, 02:36 PM
If you're getting into real estate now you have to look hard to find something because of the already high real estate prices. It's harder to find something to cash flow. If you want to hold onto that piece of real estate for a long time and not "flip" it, as long as you break even you are doing well.
Tell that to all the doods I know doing it on a daily basis every day, making a killing. Of course you have to do a little homework, but if you have cash or can get some, there's deals to be made everywhere. It's all cyclical everywhere, you just have to be able to recognize where the cycle's at.
Also "flipping" is buying today, low, and selling it toworrow (or very very quickly), most notibly when you buy it, already having a buyer lined up at a higher price than you have to pay.
Tell that to all the doods I know doing it on a daily basis every day, making a killing. Of course you have to do a little homework, but if you have cash or can get some, there's deals to be made everywhere. It's all cyclical everywhere, you just have to be able to recognize where the cycle's at.
Also "flipping" is buying today, low, and selling it toworrow (or very very quickly), most notibly when you buy it, already having a buyer lined up at a higher price than you have to pay.
True, but I was in the lending business up til about a month ago. Every Tom Dick and Harry thinks they are going to make a mint in real estate. Only a few actually are smart enough to pull it off. Those people actually get their best properties from others that bought and couldn't manage it properly. It's always easy if you have a lot of money. Just like with most everything else.
The flipping part is what gets people in trouble. They purchase, and then don't realize what it takes to remodel, etc to get that extra cash when they sell. Plus, banks don't like to loan to "flippers" so that goes back to having the money to begin with. Some make money, but most get in over their heads.
Coach Micool
09-30-05, 02:48 PM
True, but I was in the lending business up til about a month ago. Every Tom Dick and Harry thinks they are going to make a mint in real estate. Only a few actually are smart enough to pull it off. Those people actually get their best properties from others that bought and couldn't manage it properly. It's always easy if you have a lot of money. Just like with most everything else.
The flipping part is what gets people in trouble. They purchase, and then don't realize what it takes to remodel, etc to get that extra cash when they sell. Plus, banks don't like to loan to "flippers" so that goes back to having the money to begin with. Some make money, but most get in over their heads.
True, very.
It does take money to make money. And if you got money, it's easier to get more. If you ain't got any, it's almost impossible, which is kinda ironic.
But, in Sads case, I think he'd be prudent to keep his paid-for 'investment', and use it for what its worth. But that's only my opinion and you get what you pay for.
I just talked to the lady and let her know we'd consider selling it as is for around tax value. She seemed pretty positive about it and we're going to meet next Sunday. They've got some special circumstances that make this particular place desireable. The lady who I talked to and her husband own the lot 2 lots down from mine and are about to build on it. Meanwhile, her son in law is getting moved back to the states from Iraq because one of their 2 kids had cancer and needs chemo, so they want to live close to the parents so they can help out. It would be nice for everyone involved if this works out somehow. Except the hot chick. She'd be fucked.
Coach Micool
09-30-05, 02:55 PM
I just talked to the lady and let her know we'd consider selling it as is for around tax value. She seemed pretty positive about it and we're going to meet next Sunday. They've got some special circumstances that make this particular place desireable. The lady who I talked to and her husband own the lot 2 lots down from mine and are about to build on it. Meanwhile, her son in law is getting moved back to the states from Iraq because one of their 2 kids had cancer and needs chemo, so they want to live close to the parents so they can help out. It would be nice for everyone involved if this works out somehow. Except the hot chick. She'd be fucked.
Tax Value!!!??? (for Dolly), are you nutz?
Tell me sad, haw big is the lot? What's lots been selling for in the area?
What size is the structure, beds, baths? Age?
What's the tax value? If you give me all the info you can, I'll let you know my opinion of the tax value, as whether it's good or not. If it's not good, an appraisal costing you $350 could save you thousands. I'll give you a free opinion. With disclaimers, of course. Not so much an actual $ amount at face value, but I could help you in determining whether an appraisal is worth it to you.
I just talked to the lady and let her know we'd consider selling it as is for around tax value. She seemed pretty positive about it and we're going to meet next Sunday. They've got some special circumstances that make this particular place desireable. The lady who I talked to and her husband own the lot 2 lots down from mine and are about to build on it. Meanwhile, her son in law is getting moved back to the states from Iraq because one of their 2 kids had cancer and needs chemo, so they want to live close to the parents so they can help out. It would be nice for everyone involved if this works out somehow. Except the hot chick. She'd be fucked.
Special circumstances? That means more cash - not everything working out somehow. What are you? A communist?
Tax Value!!!??? (for Dolly), are you nutz?
Tell me sad, haw big is the lot? What's lots been selling for in the area?
What size is the structure, beds, baths? Age?
What's the tax value? If you give me all the info you can, I'll let you know my opinion of the tax value, as whether it's good or not. If it's not good, an appraisal costing you $350 could save you thousands. I'll give you a free opinion. With disclaimers, of course. Not so much an actual $ amount at face value, but I could help you in determining whether an appraisal is worth it to you.
Tax value is $122k. It sold for $113k in 2001, but that's before it got trashed. I've fixed all the mechanical stuff and done some finish work, but it still needs the master bath redone (I have everything to do it, but haven't yet), carpet, and a deck on the back. You can look it up on the Cabarrus County GIS locator form (11350 Sansbury Rd, Mt Pleasant, NC) or ask builder for more details.
I feel like it's going to continue to appreciate, but just because of the land. The doublewide theoretically depreciates. Selling would probably not be the best way to max out my roi, but it would provide security and peace of mind.
(11350 Sansbury Rd, Mt Pleasant, NC) .
I'll be heading up that way with a bucket full of oily rags and some lighter fluid.
I'll be heading up that way with a bucket full of oily rags and some lighter fluid.
That's cool. My neighbors have a TON of ammunition.
meatpile
09-30-05, 03:10 PM
True, but I was in the lending business up til about a month ago. Every Tom Dick and Harry thinks they are going to make a mint in real estate. Only a few actually are smart enough to pull it off. Those people actually get their best properties from others that bought and couldn't manage it properly. It's always easy if you have a lot of money. Just like with most everything else.
The flipping part is what gets people in trouble. They purchase, and then don't realize what it takes to remodel, etc to get that extra cash when they sell. Plus, banks don't like to loan to "flippers" so that goes back to having the money to begin with. Some make money, but most get in over their heads.
This is solid. (http://finance.yahoo.com/q/bc?t=my&s=VFINX&l=on&z=m&q=l&c=VPMCX%2C+VWELX)
chipshot
09-30-05, 03:14 PM
This is solid. (http://finance.yahoo.com/q/bc?t=my&s=VFINX&l=on&z=m&q=l&c=VPMCX%2C+VWELX)
I just got into that about an hour ago.
meatpile
09-30-05, 03:16 PM
I just got into that about an hour ago.
:deal:
vpkozel
09-30-05, 03:17 PM
I just got into that about an hour ago.
Past performance is not guarantee of future results. Just saying.
chipshot
09-30-05, 03:20 PM
Past performance is not guarantee of future results. Just saying.
moon
Index funds are typically low risk for the long term investor, no?
Index funds are typically low risk for the long term investor, no?
Yes, and also low return.
Past performance is not guarantee of future results. Just saying.
Are you trying to get me to bet on Duke or something?
vpkozel
09-30-05, 03:24 PM
Are you trying to get me to bet on Duke or something?
Navy last year. Kansas a couple of years ago.
Navy last year. Kansas a couple of years ago.
Utah this year - helps you guys this week.
chipshot
09-30-05, 03:25 PM
Yes, and also low return.
So why does everything I read say they out perfrom 80% of other funds?
So why does everything I read say they out perfrom 80% of other funds?
Over the long long long long long long term they may. If you're willing to make some more return in the shorter term a more aggresive fund may be better. Just saying.
Coach Micool
09-30-05, 03:30 PM
Tax value is $122k. It sold for $113k in 2001, but that's before it got trashed. I've fixed all the mechanical stuff and done some finish work, but it still needs the master bath redone (I have everything to do it, but haven't yet), carpet, and a deck on the back. You can look it up on the Cabarrus County GIS locator form (11350 Sansbury Rd, Mt Pleasant, NC) or ask builder for more details.
I feel like it's going to continue to appreciate, but just because of the land. The doublewide theoretically depreciates. Selling would probably not be the best way to max out my roi, but it would provide security and peace of mind.
OK, so you have decided to sell, no problem- its your property, your money, and any other opinions on the subject you have weighed and determined this. In your best judgement, since people who have given their opinion don't know the property or your priorities, it's the right thing to do, OK. Good choice.
Based on the previous sale alone, it should be worth approximately $132K, simple calculations based on average property increases of average properties like yours in an average place (4% increase, compounded per annum), provided it's not in worse condition now than then. However, seeing as what you've stated that it's not, think about it this way:
Unlike New Orleans, you NEVER spend more money to 'cure' an item than it adds (or makes up) the resulting market value. Therefore, if it's gonna cost more than 10 grand (the diff between the tax value and probability value estimate of $132K) to 'cure' the curable items, then don't spend the money on it and sell it if you get her to buy it- also assuming she ain't gonna make you fix stuff- spend money, and also the fact you won't be paying a selling agent-which initself saves some cash.
Also, property improved with a doublewide that is set up properly (like 'permanently'), less than 20 years old, with no apparent deferred maintenance in a decent neighborhood, DO appreciate. If they are adequately maintained, they DO NOT depreciate like you'd think. Well, misstated, they DO depreciate at worst- about the same way a dollar depreciates, so in real money, the hold their value. Where you 'see' the depreciation, would be that the same amount of money in two years, ain't worth what it is today.
chipshot
09-30-05, 03:31 PM
Over the long long long long long long term they may. If you're willing to make some more return in the shorter term a more aggresive fund may be better. Just saying.
It's not my only one.
It's not my only one.
That's what I figured. I'm 32 so I got all my investments in stock funds now and one of those is an index fund but most of them are more aggressive. I'll gradually reduce that as I get older.
OK, so you have decided to sell, no problem- its your property, your money, and any other opinions on the subject you have weighed and determined this. In your best judgement, since people who have given their opinion don't know the property or your priorities, it's the right thing to do, OK. Good choice.
Based on the previous sale alone, it should be worth approximately $132K, simple calculations based on average property increases of average properties like yours in an average place (4% increase, compounded per annum), provided it's not in worse condition now than then. However, seeing as what you've stated that it's not, think about it this way:
Unlike New Orleans, you NEVER spend more money to 'cure' an item than it adds (or makes up) the resulting market value. Therefore, if it's gonna cost more than 10 grand (the diff between the tax value and probability value estimate of $132K) to 'cure' the curable items, then don't spend the money on it and sell it if you get her to buy it- also assuming she ain't gonna make you fix stuff- spend money, and also the fact you won't be paying a selling agent-which initself saves some cash.
Also, property improved with a doublewide that is set up properly (like 'permanently'), less than 20 years old, with no apparent deferred maintenance in a decent neighborhood, DO appreciate. If they are adequately maintained, they DO NOT depreciate like you'd think. Well, misstated, they DO depreciate at worst- about the same way a dollar depreciates, so in real money, the hold their value. Where you 'see' the depreciation, would be that the same amount of money in two years, ain't worth what it is today.
Good stuff. I appreciate your opinion on this. I'm not fixed on either course of action yet, and until money has exchanged hands, I may not even have a sale or a renter pending. I think considering I figured on putting in about another 3-5 grand to finish it (mostly deck), 122k would be pretty fair, especially since there are no realtor fees involved. I think if I kept it and rented it that I could do better in the long run financially, but that's before I apply a value to my time and whatever stress is involved in continuing to own and rent it out. Either are decent options. I also think it would be nice to be part of this family's solution if it also works out well for me.
meatpile
09-30-05, 03:59 PM
There were managed funds on that chart as well. They were the only ones I currntly hold that go back 20 years.....
I was just pointing out that over time, losses in equites have always been short term, with the exception of buying at the peak of 1929, which took until the 50's.
How one manages those equities is another issue altogether. I just prefer investments I don't work for. Things I work for that make money are jobs / businesses. Investments are seperate.
meatpile
09-30-05, 04:03 PM
Good stuff. I appreciate your opinion on this. I'm not fixed on either course of action yet, and until money has exchanged hands, I may not even have a sale or a renter pending. I think considering I figured on putting in about another 3-5 grand to finish it (mostly deck), 122k would be pretty fair, especially since there are no realtor fees involved. I think if I kept it and rented it that I could do better in the long run financially, but that's before I apply a value to my time and whatever stress is involved in continuing to own and rent it out. Either are decent options. I also think it would be nice to be part of this family's solution if it also works out well for me.
Make sure in Coach's example you include:
Transaction costs.
The likelihood of a buyer / ease of marketability. Real estate ain't liquid - I don't have to meet anyone to sell equities. I click a mouse and cash is EFT.
Property taxes / maintenance for 3-5 years.
Also, IMHMFO, 3-5 years is not long enough to be reasonably assured of appreciation. That's absolutely true for equities, I'd say moreso for real estate.
Make sure in Coach's example you include:
Transaction costs.
The likelihood of a buyer / ease of marketability. Real estate ain't liquid - I don't have to meet anyone to sell equities. I click a mouse and cash is EFT.
Property taxes / maintenance for 3-5 years.
Also, IMHMFO, 3-5 years is not long enough to be reasonably assured of appreciation. That's absolutely true for equities, I'd say moreso for real estate.
I'm not marketing it at all yet, and didn't plan to for months if at all. That's what makes this a potentially attractive situation. They came to me and want this place specifically, and they don't seem to be disputing the value, which is way higher than what I paid for it because it was so tore up that it wasn't mortgageable by a bank before. Money wise, it's a no lose situation no matter what I do or don't do with it.
meatpile
09-30-05, 04:11 PM
I'm not marketing it at all yet, and didn't plan to for months if at all. That's what makes this a potentially attractive situation.
That was my point. You don't know what's up in 3-5 years. To me it's a no brainer to sell and move on to the next deal.
That was my point. You don't know what's up in 3-5 years. To me it's a no brainer to sell and move on to the next deal.
I tend to agree, but only because I don't necessarily want to have to take the time out to deal with maintaining it. It's like Coach said, if I want to harvest money out of it, I could keep it and borrow against it.
Galethog
09-30-05, 04:48 PM
Sell it and then go the Vegas and bet it all on red or black. I seen it done in the movies, it works every time.
outofstate
09-30-05, 04:53 PM
Sell it and then go the Vegas and bet it all on red or black. I seen it done in the movies, it works every time.
RED! :woohoo: go with RED!!!!
Coach Micool
09-30-05, 05:12 PM
I tend to agree, but only because I don't necessarily want to have to take the time out to deal with maintaining it. It's like Coach said, if I want to harvest money out of it, I could keep it and borrow against it.
What I would really suggest is to borrow against it and buy some more rental properties- and do it over and over until you have enough to retire on.
What I would really suggest is to borrow against it and buy some more rental properties- and do it over and over until you have enough to retire on.
I know that's a model that works. I'm just not sure I want to do it, at least not until I'm not tied to a 9 to 5 job.
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