Author Topic: I want to rent a house(s) in my FIRE but don't know much about it . . .  (Read 576 times)

Lancebaby

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I am at FIRE but plan to work as long as my current employer will keep me. . .probably 3-5 years.  I currently own my house free and clear and have always owned. . I have never rented but I want to do some geographic arbitrage and get out of owning a home and just rent.  I currently live an a very affluent area in the DFW area and love it but the taxes, insurance, and maintenance are very high.  I can put up with it while I am working because there is no state income tax but when I retire I won't have much/any income.

Current housing expenses:
Property tax - $1500/month (and going up every year) - $18,000 per year
Property insurance - $450/month - $5000 per year
Maintenance/repairs - $400/month - $4800/year (this does not include lawn, etc)
Misc - this is the unknown. . AC and furnace are 15 years old, etc. .stuff breaks. . .

===>  Monthly outlays are $2500/month at a minimum and more likely to be around $3000

House would sell in a week for $700k (again, it is free and clear).  So my questions are:

Does it make sense to consider selling and renting (I would move to a cheaper area and can get very nice homes - perhaps too nice! for $2500 to $4000/month).  I sell for $700K, after costs, net $650K and invest at average return of 4% per year this will throw off $26,000 on average or $2100/month.

So my questions. .
1.  Does this make sense?  Sell and rent?
2.  Since I have never rented I don't know what to expect as far as expenses. . .what am I expected to pay?  Lawn care?  Pool maintenance? Utilities?What else?
3.  What negatives should I consider?