Renting Out Your Home | WILL I MAKE MONEY? | With Ira Miller
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- เผยแพร่เมื่อ 30 พ.ย. 2024
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For Inquiries:
Ira Miller, Broker Associate, GRI
ERA/Grizzard Real Estate
State Licensed Contractor and
State Licensed Home Inspector
📱 Cell: (352) 454-9561 | 📞 Office: (352) 204-9025
✉ Email: Homesaroundthevillages@gmail.com
💻 Website: www.HomesAround...
🔵 Facebook: / thevillagesexpert
Thank you, Ira. The video was very informative.
Carolyn
Good stuff IRA. You missed a few important considerations:
1. depreciation - if your AGI is under $150k (married, I think), you can depreciate the initial value of the house (but not the land) over 27.5 years. Ask your tax person for details, but on a $300k home, this might be a deduction of $9000/year.
2. tenant turnover costs - each time you have to rent it out to new tenants the house will have to be refreshed (paint, wall repair, carpet cleaning/replacement and such). Figure sending the amount equal to 1 month rent each time you have to prep like this.
3. mechanical/structural repair - you will be on the hook to fix AC, plumbing, roof, etc. Sometimes under tight timelines. Keep a reserve fund of a few $k for this.
4. active vs passive management - the deductibility of expenses is only allowed if you "actively" manage the property. That means screening tenants, coordinating income/expenses, basically the day-to-day stuff. Being a long-distance active manager is tough. If you hire a property manager to do the day-to-day stuff, you can't deduct anything. And count on paying about 10% of every month's rent to have this work managed for you. But the stress and hassle is taken care of by somebody else.
Rental real estate is a legit wealth builder if you can handle it. Thanks again Ira!
Great video Ira. If I live 3,000 miles away, how much of a headache would a property mgt. service be to rent out a house full time? I am looking for more info on this, I'm not seeing very good comments about different property mgt. services companies. I'd like to move to the villages in roughly 3-5 years on a part time basis. Your thoughts on the future market and prices?
That was an amazing presentation Ira. Thank you for all of your vids
You sure know your stuff👍
Good information. A rental I looked at included lawn maintenance and activity fee. There is no way, as a rentor, I am taking care of the lawn, trees, or pest control, not gonna happen. I'm not the owner not paying these fees.
This video as of February 2024 is to old to calculate costs .
Correct, this video was made and published over 2 years ago. We are working on creating more rental content, stay tuned for updated videos! :)
Good information 👍 Thanks Ira! You didn't talk about hiring a property management company for your rental. What are the pros and cons??
Thank you Ira. You provided a lot of good information with multiple options. Outstanding job!!
Great video. How much is monthly property management if we don’t want the hassle of doing it ourselves
Hi James, That's a good question. All property management company's are different, ERA Grizzard the brokerage I work with charges 15%.
Can you get an 80/20 conventional loan if it is not your primary residence? Meaning, I would only have to put down 20%? Not more?
Yes, you will just be charged a little higher interest rate
Hi Ira, How much would you estimate for property management for seasonal or year round vetting and leasing of tenants?
Hi Greg, The property management team with ERA Grizzard charges 15% to manage your rental property.
I still don't know why this house hasn't sold yet. My wife and I love the Sycamore and wish we were closer to moving down there. Once the bridge is open, DeSoto will be a great location.
It’s under contract, just hasn’t closed yet. We really like it, too.
Hi Ira, great video!! We are considering doing that exact same thing. Your information was so helpful. Can you tell me how much management fee is? We are coming down in May for a lifestyle visit. We also would like to look at houses. The sweet young lady in your office mailed us a packet. Received today. How soon in advance do we need to call you to see houses?
Hi Rebecca, I am glad that you received your maps. The management fee through ERA Grizzard (My Broker) is 15% to handle your rental. My schedule does book up fast, once you have set dates in May I would recommend calling my assistant Paige who sent you the maps. She can get you set you up on my calendar to meet with me!
Ira, do most people pay cash for these properties or finance them? I just assumed cash. These monthly expenses are less than my monthly expenses overall. My property taxes are lower, but everything else is similar or higher in Minnesota. I have a tiny lot and lawn service is $30 a week. Trash is in excess of $55 per month. We don’t have termites or other pests, but you do have to fertilize. I don’t because I have pets and I don’t like chemicals in my yard. I don’t have to water the lawn much, but some years it can be dry. Though we have a short summer by Lake Superior (6 - 8 weeks of very nice weather by the lake, more away from the lake) there is nothing more perfect than summer in Duluth Minnesota. I’ve decided I can definitely afford The Villages with 80% plus down and a small mortgage. Thanks again.
Cynthia, There are a lot of people who do pay cash but also a lot of people who finance as well. Either way you decide to purchase here shouldn't be an issue. Please reach out to me when you make the trip down, I would love to meet with you and show you around and take you out to look at some homes.
I do not see an additional cost of property tax (ccd) and a bond. Was that not included in the assessment and how much would that be if so?
Go to the 1:59 mark in the video. Line 2 of Ira's cost breakdown has taxes, including bond and maintenance fee, at $475 per month.