Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

would this be stupid to consider..

there is a house for sale down the road that has been 4sale for probably a 1 1/2-2 years. its a 2 bdr (which i want at least a 3) 1 bath (again i want at least 2) it has very little yard, like half an acre.. although its in the country so theres a field behind it and his family owns tons of land right down the road. well it originally was put on the market for over 100 grand. and its now for 67. I told hubby if we could get it for around 50k we could buy it.. however i'd buy it for probably 60K.this is why i'd be willing to do it. We figure it's only going to be about 200 more than we pay in rent.. but we can have it paid off in about 5 yrs if we really wanted too. I told him I will want OUT of that house as soon as possible. And we would have it as a Rental house. Is it stupid to consider this on my part or would this be a smart move?

 
krazyash023

Asked by krazyash023 at 9:00 AM on Jan. 20, 2009 in Home & Garden

Level 2 (10 Credits)
This question is closed.
Answers (10)
  • If houses are great investments and if you pay it off before you rent it out than that's 100% profit and that may pay your new mortgage else where. But remember to look into laws that apply to landlords to see what type of stuff you may have to repair if it breaks. But i'd go for it that's a good bargain even if you fix it up and sell it when the market changes (IT's a Buyers Market)
    amommy2a2yrold

    Answer by amommy2a2yrold at 9:52 AM on Jan. 20, 2009

  • In this economy, it is anyones guess. But, remember, rent should be AT LEAST your mortgage plus 10-20% Will people be able to afford this in your area? WE have two rental houses and if they weren't rented out to family, I'm not sure if we could afford it.
    navy-wife

    Answer by navy-wife at 9:10 AM on Jan. 20, 2009

  • I think it would be smart, I think that when you rent you are kinda throwing your money away, because if you buy that house now, your money will be going towards something that will give u money back in the long run (when you rent it out) I would go for it if I were you!
    Candice_brooke

    Answer by Candice_brooke at 9:15 AM on Jan. 20, 2009

  • good morning ash sorry dont have a answer for ya maybe next question
    jodi205

    Answer by jodi205 at 9:15 AM on Jan. 20, 2009

  • I can't say if it's a good/bad idea, but I do want to point out that if you rent it out, that will make you responsible for all repairs. As someone above mentioned about the rent being mortgage plus extra, you have to make sure that some of that extra gets put away to use for repairs if/when they become necessary. You might want to talk to some others who rent out a home first, to see if you really would want to do it. My parents did it for a while, but it got to be a really big hassle when the people renting would call 2-3 times a week or month b/c something broke, wasn't working right, etc., and they had to go right over and fix it, b/c you can't let it go. Just some things to think about.
    tropicalmama

    Answer by tropicalmama at 10:24 AM on Jan. 20, 2009

  • That was what we intended to do with our house, but it didn't work out that way. The house now isn't worth what we paid for it because the market is doing so bad where we are. We actually wanted to sell it, not rent it out. Now it's looking like that's going to be our only option but I don't want to do it. I just had a friend who rented out their house so they could move. The tenants were a nightmare. They quit paying rent, trashed the house, and stole everything they could take (appliances, light fixtures, etc). It's up to you if you want to possibly deal with that. I would look at how well houses are renting in your area. I know here, there's so many houses for rent, it's hard. Good luck with what ever you decide!

    mom2XandZ

    Answer by mom2XandZ at 11:38 AM on Jan. 20, 2009

  • I don't think it's stupid... you can always add additions to the home if you want as well.
    xxhazeldovexx

    Answer by xxhazeldovexx at 11:50 AM on Jan. 20, 2009

  • in our area you can buy a house 2 yrs old built in 2006 for about $80 and i'm sure if you offered $65 they would take it. they are 3 bedrooms with 2 baths in a community. so you have to really do some research on what the comps are in your area. comps are comparisons of what other houses are going for. also you have to consider that when you do the mortgage calculator (they exclude the extra fees)there are also other fees that get added unto your mortgage so it may not just be $200 more. there are home warranty fees, home owners insurance which you have to have before you buy but can drop after the sell of the house and then there is the property tax. these all could add up to $300 or more in extra mortgage fees.
    melody77

    Answer by melody77 at 1:55 PM on Jan. 20, 2009

  • in our case though we did only end up paying $200 more cause our rent was to high before. talk to a lender and find out for sure what all the fees could run. also i would never buy a house without getting a home inspection. there might be mold or plumbing issues. so i would find that out first before i seriously considered buy it. you can back out 10 days during the inspection period. pm if you have more questions.
    melody77

    Answer by melody77 at 1:55 PM on Jan. 20, 2009

  • also my mother did rentals and she had problems. it can be hard getting good renters. so you just never know. plus you'd probably still have to have home onwers insurance for that property when renting. make sure you get all your answers before you jump in. maybe there is a reason no one is buying that house.
    melody77

    Answer by melody77 at 1:58 PM on Jan. 20, 2009

close Cafemom Join now to connect to other members! Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN