texasdiver wrote:Sounds like a tremendous amount of hassle for possibly no payback.
Being a landlord is like any other profession. There is a STEEP learning curve. You would go through the steep part of the learning curve then give it up. Hardly seems worth the effort.
I'd just wait and move when you want to. In 2 years you may find the perfect house that doesn't need remodeling. You never know.
letsgobobby wrote: I think we can find a modest place on a good lot, rent it out for two years and at least cover our costs, and then in 2 years remodel it extensively/enlarge it and move in, then sell our current place. Since we'd extensively remodel we'd be less concerned about potential renter damage; and since the market is in an upswing by all appearances, we'd be able to sell our current house for more (and hopefully the credit market would have loosened up a little, enlarging our pool of potential buyers).
I have no landlording experience and I'm busy.
KyleAAA wrote:Financially speaking (excluding what happens to home prices over the next two years), it would be a better deal to buy the new house and rent out your current house. Why? Owner-occupied mortgage rates are significantly lower than those available to investors. If you buy a new house but don't plan to live there for two years, you'll be stuck paying investor rates. These average about 1% more, if memory serves correctly.
Regarding management, the properties are only 15 minutes apart. Managing it yourself shouldn't be a problem SO LONG AS you pick a good tenant. Contrary to the horror stories you're going to hear on this thread, landlording really isn't all that much work except in the very worst (and rare) of circumstances. I would not recommend hiring a property manager since you live so close to the property.
Hector wrote:You bought a house 18 months ago thinking you found the perfect home. Now you are thinking about moving out!
For now you think buying another house in the school district would be the perfect home and has to be done in 2 years. Something might change in next 2 years. Why not wait for 2 years?
adamcate wrote:Are you positive the fact that one child already attends the school doesn't make the chances for the younger one better? Around here, if the eldest child wins the "lottery," younger siblings will be allowed to go to the same school so long as they begin attending while the other child is still there.
It seems like you are on top of the situation, but may be one thing to look into.
TTU wrote:Becoming a landlord for a house less than 15 miles away is not the same as starting a small business! I am a landlord myself. You find good renters through a thorough vetting process. Credit scores tell you a lot about people. Get good references and past employers/landlords. Believe it or not, there are good, responsible people out there who pay the rent on time and take care of a rental property.
letsgobobby wrote:Any good recommendations for a book or a website about rental properties, landlording? I'm thinking of the Dummies series; Eric Tyson, one of the co-authors, also wrote the Personal Finance for Dummies book and it wasn't horrible.
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