Posted by Joe on May 11, 2006 at 10:17:58:
Not to kick you while you are down … but, if you screwed up enough to get yourself into that kind of situation, why would anyone believe you when you say “This is a great price for a qualified buyer.”?
Maybe a good chance for a short sale?
RENTING ROOMS - Posted by Rod
Posted by Rod on May 10, 2006 at 13:41:48:
I have an investment home that is vacant, evicted tenant after not paying rent since Dec 2005. The rent in this area is $1100 to 1300. My note is $2000 a month. I am having a hard time finding a tenant who will pay over $1300. Is renting rooms separately a wise option for $600 to $800 each? Or is this more trouble than its worth. I am coming up on 3 months behind on mortgage and getting desparate. Any suggestions would be helpful.
P.s. House is less than 1 year old, 3br, 2.5 bath (Virginia)
Thanks,
Re: RENTING ROOMS - Posted by Sean
Posted by Sean on May 12, 2006 at 11:47:44:
A rooming house is management intensive, but great for cashflow… I don’t think I’d recommend that route for someone just starting out.
IF, IF you are are going to rent rooms, I’d recommend, running CABLE LINES to every room… Get a maid at least once if not twice a week to clean the common areas… have STRONG house rules and ENFORCE them. I wouldn’t waste time with a phone line, tenants should have cell phones of their own. Internet is another cheaper option, get some sort of high speed, probably packaged with your cable and set the house up for wireless.
Then market and rent… there is a need for this type of housing, but you will have high turn over, and they are management intensive.
You need to sell. - Posted by DaveD (WI)
Posted by DaveD (WI) on May 11, 2006 at 09:27:40:
If it doesn’t cashflow, are you trying to make it up on volume or something?
Sell on soft terms. Contract with 10% down. Monthly payments high enough to cover the nut, plus a little. Like michaela, I’m interested in how you got into this mess.
Re: RENTING ROOMS - Posted by Jane
Posted by Jane on May 11, 2006 at 07:50:07:
Dear
i wlllike to be ur tentant . i am rady to pay $1300 pls let me hear from you .
jane
pls e-mail me.
janeogaga@hotmail.com
Re: RENTING ROOMS - Posted by Clint
Posted by Clint on May 10, 2006 at 20:00:24:
Rod,
Unlikely you’d get renters at $600 per room per month; Assuming this is a nice area/nice house of course. Rooms for rent are usually by the college locally or someone who rents out 1 room in a house in a ‘bread and butter’ neighborhood; particularly in the central Virginia area;
I have sent you an email; call me if you’d like, I may be able to advise you.
Clint
Re: RENTING ROOMS - Posted by Natalie-VA
Posted by Natalie-VA on May 10, 2006 at 14:43:29:
Ron,
Looks to be a pretty nice house according to the photo you sent. It’s not in my area though. There’s a guy named Clint that posts on this board that might have an interest.
Back to your original question, I would think that renting out rooms would be a management nightmare. Additionally, the neighbors would probably complain to the county or town that you were running an illegal boarding house. I would try and sell if I were you.
Good luck with it.
–Natalie
Re: RENTING ROOMS - Posted by michaela-FL
Posted by michaela-FL on May 10, 2006 at 14:28:49:
Rod,
jsut curious? How did you get into that situation?
You may want to look at that to make sure you won’t
repeat the same mistake.
Did you have to refinance and your credit had tanked,
so that your interest rate is really, really bad?
Did someone give you the chance to buy a house with
nothing down, renters already in it, with promises of
high rents?
What’s the story?
Michaela
Re: RENTING ROOMS - Posted by Natalie-VA
Posted by Natalie-VA on May 10, 2006 at 14:20:23:
Rod,
Where in Virginia is it? If you decide to sell, I’m in Virginia Beach. Drop me an email if you have an interest in unloading it.
–Natalie
How I Got In to the Mess - Posted by Rod
Posted by Rod on May 11, 2006 at 09:49:51:
I appreciate all the comments!
Rushed into this deal by a Realtor with a “hot” deal on a new construction. Saw it at night with headlights on, walkthrough with a flashlight. Went to the builder’s sales agents house about 10:00 pm to put it under contract ASAP (Of course because other investors were lined up to see it the next day and “they were sure to put it under contract” said the Realtor.) Little did I know back in September 2005 the DC Metro market was slowing down and that big party profit ship was turning around to the slow market we are in now.
I did not take time to research the rent amounts for this area. This is a very rural part of Virginia, rents are only $1000 to $1300 for a new house like I have. Even section 8 is only $1100 or so. My loan terms was 100% 30 year interest only at 9% bring the note to around $2100. My first tenant had a stash of cash and paid me 4 months up front of $1400/mo. But she was a Realtor and soon fell prey to the slow market in rural Virginia and could not pay rent. After finally getting her evicted, she still owes me for JAN, FEB & MAR! We were planning to refinance this for a lower interest rate, but procrastinated and got behind on the payment, credit starting going south fast with paying 2 mortgages (this house and my primary).
LESSONS LEARN: ALWAYS DO THE NUMBERS, IT HAS TO BE A GOOD DEAL GOING IN! DON’T RUSH INTO ANYTHING WITH OUT DOING your homework. This is has been a very costly LANDLORDING BOOTCAMP!
NOw we are just praying for a miracle. I really really don’t want a foreclosure on my credit report since we are trying to buy properties.
I owe $264,000 on this house. This is a great price for a qualified buyer. Please email me any ideas or leads.
I love real estate and I hope someone out there can learn from my mistakes!
Thanks,
Rod
Re: RENTING ROOMS - Posted by Dons
Posted by Dons on May 10, 2006 at 19:55:12:
In many places residential zoning requires tenants living under one roof to be related to each other just so the property doesn’t become a boarding house.
Re: How I Got In to the Mess - Posted by Natalie-VA
Posted by Natalie-VA on May 11, 2006 at 10:22:23:
Thanks for sharing Rod.
–Natalie