What would you do if you were me?
I'm thinking about buying a rental house and I have about $95,000 in stocks. If I cashed them out I would have to Pay long term Capitol gains on about $25,000.
I would be buying the house for about 295,000$ and put $100,000 down and rent the house out for about $1,600 per month.
The property taxes would be about $3,100 per year.
Small 3 bedroom house in suburb of Portland Oregon
- A HunchLv 712 months ago
That's a hefty price property for that monthly rent. Are you sure you want to tie up your funds like that?
Your stocks should be doubling every 7-8 years. You aren't going to get that kind of return on the property.
Let's pretend everything stays stagnant - with the rental, it's going to take you 30+ years to see a profit:
Average maintenance is 1% of home value or $3000 in your case.
Then you have $3100 in taxes.
Then periodic repairs = $1000 a year.
You brought in $19200 (hopefully), shelled out a minimum of $7100 leaving $12100 and this doesn't include your mortgage, insurance, etc, which means you will likely be breaking even ($200K loan for 30y at 4.6%= $12221)
The only way you are going to make money is if the property increases in value.
- 12 months ago
It takes a weird person to be a landlord (like me). You cannot let it get to you if your tenants trash the house, don't pay rent etc. You also have to do a lot of maintenance and repairs or your contractors' costs will eat your profit up. You have taxes, insurance, maintenance, repairs, upgrading and vacancy factors. If you have a mortgage, don't even think you are going to be getting money back out of the rental until that is paid off.