We are now landlords by necessity. Had our house on the market for 12+ months and couldn't sell it, so it's now in the 1st month of being rented (1yr lease). To meet the 2 of 5 IRS rule, we would have to dump it by June 2015, meaning we'd probably have to know what we want to do when we sign a new tenant in 2014, since we'd likely have to show the house with tenants in it.
So, some numbers:
House value: $100k? (we currently owe < $80k; paid $86k)
P&I: $385 (3.375% 5/1 ARM, set to adjust in 2016 I think)
Taxes: $50 (will be re-assessed as rental this year, so I don't know what it'll go up to)
Insurance: $60
Info on current state of house:
- Was built in 1960 on a 1940 block foundation. For the most part, it's structurally OK, but it's possible there's some movement with the block under the front porch. We only noticed the block separation when we listed it last year.
- Roof is ~10yrs old. Don't know what quality shingles they are
- HVAC is ~10yrs old.
- Water heater is ~5yrs old.
- Fridge & stove are 9yrs old, dishwasher is 5yrs old.
- Has some cheap laminate flooring that may need to be replaced if tenants are hard on it. Some carpet that will need to be replaced for sure.
Currently being rented for $1000/mo minus 10% management fee. The location of the house is decent for a rental I think. Relatively close to both a state college and a 30 min. drive of well paying jobs. Neighborhood isn't great, but the lot is pretty nice.
Experienced opinions?