Decisions like this should be done with data and hard numbers.
I know. That is why I'm asking you guys. =-)
Your post is helpful. Thanks!
Did you ever gather the data and hard numbers mentioned to properly calculate this?
Yes. I still have some questions though.
The insurance and taxes are rolled into the monthly payment. Is there a reason I would need to break them out? For my calculation, I did not. However, it's easy enough to change the way I calculated.
My house is a 3BR 2 BA walking distance (I mean steps) from the train station.
I do not know what to do with these rents. I am including apts because I have not yet found rents for the exact same type of house as mine, and I think I could compete with them based on space. Some folks want a yard.
The homes I list below are newer than mine, so I am assuming my rent would be lower that the new homes and higher than the apartments:
APTS
$1500 for 1BR "luxury" apartment at a train station
$1775 for 2BR at same place
HOUSE
$2195 4BR far from train
$2499 3 BR new town home far from train
$2700 3 BR 3 BA not close to train
Deferred maintenance is not a huge concern. We're taking care of some issues--which will cost some $$--and I'll have to get the final prices on the maintenance before I can do a true calculation.
One factor I had not considered before is that rents could go up due to a lot of investment in the area. My area is a hidden secret with very good home prices and good proximity to public transportation.
I'm planning way ahead, I know, yet I'd like to see if I can find a distressed property to move into while renting out my current house. A number of foreclosures have been sold around me. So far, new owners have been sprucing them up, so I think the rents here will go up over time even in our "old" homes.
I'm in the research phase now. Since this will be my first property, I am trying to learn all that I do not know.
Btw, I ordered via the library that book you recommended to me. I eagerly await it!