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MrsC2006
LIF Infant
Member since 6/06 318 total posts
Name:
Jenn
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Does anyone own 2 or more homes?
One as your primary residence and other(s) as investments (rentals)? DH has been reading up on this and talking to our Mortgage Broker (a friend of ours) about doing this. Just wondering if anyone else has done this and any experiences to share. Since this is a buyers market, do you think less people are renting homes than before?
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Posted 1/30/07 1:02 PM  |
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angnick
Life is So Wonderful!
Member since 8/06 6663 total posts
Name:
Angela
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Re: Does anyone own 2 or more homes?
we just closed on our second home, which is now our primary residence.
the other home is a 2 family in new hyde park and it is fully rented.
what information would you like?
If you offer competitive rents, in my opinion, u will have renters.
it is a buyers market- but do your research, i wouldnt buy a property that with rent, woudnt cover the mortgage.
our rent that we receive each month covers our mortgage, taxes and insurance.
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| Posted 1/30/07 1:28 PM |
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MrsC2006
LIF Infant
Member since 6/06 318 total posts
Name:
Jenn
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Re: Does anyone own 2 or more homes?
Well my husband has been doing all the research so far. He's been talking to our mortgage broker and investment broker who both have experience doing this. I guess what I don't understand it how do you know how much rent you can get for a particular space/area? Do you lease long term or rent month-to-month? Do you find it extremely time consuming and demanding - being a "landlord" (we both work full time)?
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| Posted 1/30/07 1:38 PM |
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mommy2Alex
3 babies for me :)
Member since 5/05 6683 total posts
Name:
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Re: Does anyone own 2 or more homes?
Not yet but hopefully soon. We own a 2 family house on Staten Island now and we are currently looking to buy a home on LI which would be our primary residence. Our tenants who were here for 5 years left last year and we found new tenants with no problems. Hopefully, it will be the same when we leave. The house would be fully rented and it would cover the taxes, mortgage, insurance and still give us an income.
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| Posted 1/30/07 2:22 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Does anyone own 2 or more homes?
I have our house here and a condo in AZ that my parents live in.
They pay us a certain amount for the rent and we cover the rest of the mortgage/taxes and insurance. We still get the tax deduction but we will still be in the loss column. We would have to help them anyway so at least they don't have to rent and never have to worry about being homeless.
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| Posted 1/30/07 2:40 PM |
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MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
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Re: Does anyone own 2 or more homes?
More people are renting in our area, because less are buying, hence the increase in inventory. We have two homes, we had three for awhile. Upside is the investment prospect, downside is that you have to maintain a good amount in the bank to make repairs with and you are are taxed on your income.
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| Posted 1/30/07 3:53 PM |
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angnick
Life is So Wonderful!
Member since 8/06 6663 total posts
Name:
Angela
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Re: Does anyone own 2 or more homes?
Posted by MrsC2006
Well my husband has been doing all the research so far. He's been talking to our mortgage broker and investment broker who both have experience doing this. I guess what I don't understand it how do you know how much rent you can get for a particular space/area? Do you lease long term or rent month-to-month? Do you find it extremely time consuming and demanding - being a "landlord" (we both work full time)?
to figure out how much rent u can get for an area- look in the local pennysaver, that is what i did.. i just wanted to make sure we were charging a fair amount. also- most of the time, 2 families are already rented, so you can just continue to charge the tenants the same rate.
we lease month to month and our tenants must give us 2 months notice when they move out. they are not allowed to use their security as last months rent (We have been burned already)
and our tenants pay all the utilities- therefore my suggestion to u is to make sure the electric has separate meters, and if possible the gas/oil is separate- the first thing we did when we bought the house was separate the heat.
we both work full time.. it is a lot in the beginning, we did a lot of landscaping and minor repairs. but now, other than picking up rent and shoveling snow if need be, it is ok..
oh and a GREAT tax write off.
fm me if u want more info.
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| Posted 1/30/07 3:56 PM |
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MrsC2006
LIF Infant
Member since 6/06 318 total posts
Name:
Jenn
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Re: Does anyone own 2 or more homes?
Posted by angnick
Posted by MrsC2006
Well my husband has been doing all the research so far. He's been talking to our mortgage broker and investment broker who both have experience doing this. I guess what I don't understand it how do you know how much rent you can get for a particular space/area? Do you lease long term or rent month-to-month? Do you find it extremely time consuming and demanding - being a "landlord" (we both work full time)?
to figure out how much rent u can get for an area- look in the local pennysaver, that is what i did.. i just wanted to make sure we were charging a fair amount. also- most of the time, 2 families are already rented, so you can just continue to charge the tenants the same rate.
we lease month to month and our tenants must give us 2 months notice when they move out. they are not allowed to use their security as last months rent (We have been burned already)
and our tenants pay all the utilities- therefore my suggestion to u is to make sure the electric has separate meters, and if possible the gas/oil is separate- the first thing we did when we bought the house was separate the heat.
we both work full time.. it is a lot in the beginning, we did a lot of landscaping and minor repairs. but now, other than picking up rent and shoveling snow if need be, it is ok..
oh and a GREAT tax write off.
fm me if u want more info.
Thank you for the tips. This is exactly what I questioning! I really appreciate the feedback!
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| Posted 1/30/07 4:16 PM |
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vegalady
Love my family
Member since 6/06 4546 total posts
Name:
SNV
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Re: Does anyone own 2 or more homes?
Yes my DH and I own 3 homes on eas our primary residence. Real Estate is the best investment you can make. It is really hard at times but it will be worth it in the end. HOwever, you must make sure you keep the home rented every month. We do vacation rentals with our investment homes so their are some months out of the year where they are not rented. We manage though.
Message edited 1/30/2007 4:37:55 PM.
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| Posted 1/30/07 4:37 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: Does anyone own 2 or more homes?
Sometimes being a LL sux.
We have 4 sets of tenants and had to recently start eviction proceedings for the first time. We were in court on Friday. They have 2 small kids and the wife is pregnant but this is business so I cannot concern myself with their personal situation.
The upside to investing in real estate is the tax write off and building equity while someone else pays the mortgage. But the down side is maintenance expenses, covering mortgage shortfalls or shortfalls at tax time (not covered by rent) and finding GOOD tenants.
We manage 2 properties (2 sets of tenants in a duplex) and a property manager handles the other 2 (house & a townhouse). DH, FIL, BIL and one uncle have made all the repairs for the 2 we manage so we save a lot on contractors for those. It's a lot of work but I leave that to DH who deals with the tenants.
I just recently met the tenants and they moved in last year (realtor found them). I never had a reason to meet them until their rent issue started. We have the security and will likely end up keeping that money. We got a judgment on Friday and they will be out of the house before the end of February (paying rent until then too).
Message edited 1/30/2007 4:51:23 PM.
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| Posted 1/30/07 4:50 PM |
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MrsC2006
LIF Infant
Member since 6/06 318 total posts
Name:
Jenn
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Re: Does anyone own 2 or more homes?
Posted by MrsT
Sometimes being a LL sux.
We have 4 sets of tenants and had to recently start eviction proceedings for the first time. We were in court on Friday. They have 2 small kids and the wife is pregnant but this is business so I cannot concern myself with their personal situation.
The upside to investing in real estate is the tax write off and building equity while someone else pays the mortgage. But the down side is maintenance expenses, covering mortgage shortfalls or shortfalls at tax time (not covered by rent) and finding GOOD tenants.
We manage 2 properties (2 sets of tenants in a duplex) and a property manager handles the other 2 (house & a townhouse). DH, FIL, BIL and one uncle have made all the repairs for the 2 we manage so we save a lot on contractors for those. It's a lot of work but I leave that to DH who deals with the tenants.
I just recently met the tenants and they moved in last year (realtor found them). I never had a reason to meet them until their rent issue started. We have the security and will likely end up keeping that money. We got a judgment on Friday and they will be out of the house before the end of February (paying rent until then too).
WOW! I really appreciate the detailed info. I think I could remain business minded about the whole thing, although I'm sure it's a terrible feeling to have to evict someone. The maintenance issue concerns me because DH is SO NOT handy. Do you think it would be wise to partner with someone who has less investment capital that I do but he is very very handy?
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| Posted 1/30/07 4:59 PM |
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MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: Does anyone own 2 or more homes?
Posted by MrsC2006
Posted by MrsT
Sometimes being a LL sux.
We have 4 sets of tenants and had to recently start eviction proceedings for the first time. We were in court on Friday. They have 2 small kids and the wife is pregnant but this is business so I cannot concern myself with their personal situation.
The upside to investing in real estate is the tax write off and building equity while someone else pays the mortgage. But the down side is maintenance expenses, covering mortgage shortfalls or shortfalls at tax time (not covered by rent) and finding GOOD tenants.
We manage 2 properties (2 sets of tenants in a duplex) and a property manager handles the other 2 (house & a townhouse). DH, FIL, BIL and one uncle have made all the repairs for the 2 we manage so we save a lot on contractors for those. It's a lot of work but I leave that to DH who deals with the tenants.
I just recently met the tenants and they moved in last year (realtor found them). I never had a reason to meet them until their rent issue started. We have the security and will likely end up keeping that money. We got a judgment on Friday and they will be out of the house before the end of February (paying rent until then too).
WOW! I really appreciate the detailed info. I think I could remain business minded about the whole thing, although I'm sure it's a terrible feeling to have to evict someone. The maintenance issue concerns me because DH is SO NOT handy. Do you think it would be wise to partner with someone who has less investment capital that I do but he is very very handy?
NO! Do NOT partner with anyone except your husband (if you mean partner in the sense of purchasing together). Having a partner is just one more layer to go through to get something done (repairs, refinance, selling the property, eviction proceedings, etc.).
I recommend hiring a property manager. They have a rolodex full of people that can make repairs for a reasonable price. Or, if you want to save yourself 10% management fee, start gathering a rolodex yourself of people that friends & family have used for household repairs. And you can add the handy friend to that rolodex. I would rather pay the handy friend for services than have him/her as a partner with veto rights over anything.
Good luck 
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| Posted 1/30/07 6:51 PM |
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