Comments on: Pros and cons of owning rental houses http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/ Austin Real Estate Blog Fri, 11 May 2012 17:13:15 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Steve Crossland, REALTOR in Austin TX http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-193131 Steve Crossland, REALTOR in Austin TX Sat, 28 Apr 2012 14:23:29 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-193131 > It is a smart choice to hire a property management to manage the a residential rental property? Hi Roselle, You should strongly consider a property manager if you don't have the time/expertise to manage the home yourself, and/or if you won't be living near enough to the home to properly manage it. Good luck! Steve > It is a smart choice to hire a property management to manage the a residential rental property?

Hi Roselle,

You should strongly consider a property manager if you don’t have the time/expertise to manage the home yourself, and/or if you won’t be living near enough to the home to properly manage it.

Good luck!

Steve

]]> By: CopyKat http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-189710 CopyKat Wed, 11 Apr 2012 03:43:20 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-189710 Thanks for this article I am determining right now if this is a good option for me or not. I am selling my first home and buying my second. I didn't quite understand the tax implications on this. It sounds like it is a good idea to keep these for about three years, and then move on if I read this correctly. Thanks for this article I am determining right now if this is a good option for me or not. I am selling my first home and buying my second. I didn’t quite understand the tax implications on this. It sounds like it is a good idea to keep these for about three years, and then move on if I read this correctly.

]]> By: Roselle http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-188779 Roselle Thu, 05 Apr 2012 19:55:50 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-188779 We are currently in a process of buying another house. If things go as planned, we might be moving to our new house the beginning of this summer. My husband and I wanted our current home to become a rental property. Since it wont make any since selling our current home because we would lose a lot. It is a smart choice to hire a property management to manage the a residential rental property? We are currently in a process of buying another house. If things go as planned, we might be moving to our new house the beginning of this summer. My husband and I wanted our current home to become a rental property. Since it wont make any since selling our current home because we would lose a lot. It is a smart choice to hire a property management to manage the a residential rental property?

]]> By: Steve Crossland, REALTOR in Austin TX http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-162078 Steve Crossland, REALTOR in Austin TX Tue, 06 Sep 2011 18:00:49 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-162078 Hi Siyanda, Your first step is to contact a lender to find out what sort of financing you can qualify for. Then buy something as an owner-occupant and live there. maybe renting a room or two to friends. Eventually, you can move out and convert it to a full rental property and buy another property. That's how a lot of investors get started. Steve Hi Siyanda,

Your first step is to contact a lender to find out what sort of financing you can qualify for. Then buy something as an owner-occupant and live there. maybe renting a room or two to friends. Eventually, you can move out and convert it to a full rental property and buy another property.

That’s how a lot of investors get started.

Steve

]]> By: Siyanda Nyengule http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-161981 Siyanda Nyengule Mon, 05 Sep 2011 10:51:42 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-161981 im a 2nd year student i want to buy a property then develop it for rental purposes what are my options as to how to attain my vision of doing this ??? im a 2nd year student i want to buy a property then develop it for rental purposes what are my options as to how to attain my vision of doing this ???

]]> By: Steve Crossland, REALTOR in Austin TX http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-158667 Steve Crossland, REALTOR in Austin TX Mon, 18 Jul 2011 17:39:51 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-158667 Hi Julie, Only the interest portion of your payment is deductible on your income taxes. You can also deduct insurance, property taxes, commission, management fees, repairs and maintenance, etc. though. Steve Hi Julie,

Only the interest portion of your payment is deductible on your income taxes. You can also deduct insurance, property taxes, commission, management fees, repairs and maintenance, etc. though.

Steve

]]> By: Julie http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-158418 Julie Wed, 13 Jul 2011 15:20:32 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-158418 This is such a basic question, but are the loan payments a deductible expense when owning a rental home? Is it just the interest like on a regular mortgage? Thanks! This is such a basic question, but are the loan payments a deductible expense when owning a rental home? Is it just the interest like on a regular mortgage?
Thanks!

]]> By: Steve Crossland, Austin REALTOR http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-126432 Steve Crossland, Austin REALTOR Wed, 11 Aug 2010 04:01:28 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-126432 Hi Patricia, As long as you receive a large enough downpayment, owner financing is a relatively safe move. It can often bring buyers to a home that otherwise wouldn't sell, or wouldn't sell for as much. You just need enough dp to cover repossession costs if necessary. Also, unless you write something in for pre-payment penalty, the buyer can refi and pay off the loan in a year or two. If that's what you want, you write in a balloon payment. If you'd rather have extended payments for many years, you'd have to have a pre-payment penalty to discourage the buyer from paying off or reselling. Steve Hi Patricia,

As long as you receive a large enough downpayment, owner financing is a relatively safe move. It can often bring buyers to a home that otherwise wouldn’t sell, or wouldn’t sell for as much. You just need enough dp to cover repossession costs if necessary.

Also, unless you write something in for pre-payment penalty, the buyer can refi and pay off the loan in a year or two. If that’s what you want, you write in a balloon payment. If you’d rather have extended payments for many years, you’d have to have a pre-payment penalty to discourage the buyer from paying off or reselling.

Steve

]]> By: patricia http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-126416 patricia Wed, 11 Aug 2010 00:12:03 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-126416 Wanted to know: What are the pitfalls in an owner selling and holding the paper (mortgage)? Can the owner define what can't and can be done with the property until it is paid in full? Or by acting as a bank, I am immediately in a catagory that forces me to abide in the same way as a bank or mortgage company?? Wanted to know: What are the pitfalls in an owner selling and holding the paper (mortgage)? Can the owner define what can’t and can be done with the property until it is paid in full? Or by acting as a bank, I am immediately in a catagory that forces me to abide in the same way as a bank or mortgage company??

]]> By: Mickie http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-28790 Mickie Mon, 25 Aug 2008 00:19:22 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-28790 I have used turbotax for years, would that program suffice when filing taxes and claiming rental property? thanks, lots of good info on this site I have used turbotax for years, would that program suffice when filing taxes and claiming rental property?
thanks, lots of good info on this site

]]> By: Steve Crossland http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-778 Steve Crossland Sat, 28 Jul 2007 02:49:53 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-778 Hi Ryan, Looks like an interesting and clever site. I don't think the results are to be trusted though. We have a very actiave MLS for Leasing in Austin, with very good data about leased home prices. That's where I look to price a rental home. steve Hi Ryan,

Looks like an interesting and clever site. I don’t think the results are to be trusted though. We have a very actiave MLS for Leasing in Austin, with very good data about leased home prices. That’s where I look to price a rental home.

steve

]]> By: Ryan Campbell http://crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-777 Ryan Campbell Fri, 27 Jul 2007 21:43:09 +0000 http://ben.crosslandteam.com/blog/2007/07/07/pros-and-cons-of-owning-rental-houses/#comment-777 Steve, I am a big fan of your blog and really appreciate the service you provide with it! I wanted to know what you think of rentometer.com? Have you found it reliable for comparing rents in the Austin area? Or are there better tools available? Thanks again, Ryan Campbell Steve,

I am a big fan of your blog and really appreciate the service you provide with it!

I wanted to know what you think of rentometer.com? Have you found it reliable for comparing rents in the Austin area? Or are there better tools available?

Thanks again,
Ryan Campbell

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