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Old 06-13-2010, 12:28 PM
 
20 posts, read 47,722 times
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Did anyone bought a brand new home and rented it out? Please share your experiences.

I got a awesome deal for a new home in Lewisville like to buy and rent.

If I pay 20%down, my all inclusive(taxes, insurance) monthly mortgage is $1500, rent potential is $2000. On top of it, there is a huge chance of appreciation.

Anyway, my cash is earning nothing in the bank. Is this good risk?
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Old 06-13-2010, 12:33 PM
 
Location: Dallas, TX
887 posts, read 2,487,125 times
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Huge appreciation? Anything special about the home or location that makes huge appreciation possible?

How many bedrooms and whats the square footage?
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Old 06-13-2010, 12:42 PM
 
20 posts, read 47,722 times
Reputation: 21
Typo - may not be huge appreciation, but it will be on positive side for sure.
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Old 06-13-2010, 01:00 PM
 
6,585 posts, read 22,381,409 times
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What is the value of the house? What schools is the house zoned to? What subdivision?
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Old 06-13-2010, 03:07 PM
 
27,456 posts, read 44,947,050 times
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there is no guarantee that house will appreciate at all--
if the economy stays stagnant and money is tight--then housing will likely rise less than it has the past year...if it is a new subdivision, your value is going to be undercut by the developer who can and will sell houses cheaper than your would be asking on resale market...

taxes however are likely to go up since cities are hurting for money

you might also have bad renters who damage your property and cause you to spend money you don't anticipate--
like buying totally new carpet or repairing sheet rock or appliances...

are you using a management service or thinking you will take care of it yourself..
how are you going to screen the people who want to rent your home
do you know what type of contract they should sign so that you can have access to the property when you want
how much of a down payment are you going to ask for--first and last months' rent???
what happens if they default on their rent--how long can you carry the mortgage w/o renting out the house?
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Old 06-14-2010, 07:38 AM
 
28 posts, read 62,229 times
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Not sure how large the market is for people willing to pay $2,000/mo. to RENT a home in LEWISVILLE. TX
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Old 06-14-2010, 08:13 AM
 
Location: Austin
7,077 posts, read 16,889,211 times
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Quote:
Originally Posted by burrogs View Post
Not sure how large the market is for people willing to pay $2,000/mo. to RENT a home in LEWISVILLE. TX
This was my initial thought. If someone can afford $2k a month in Lewisville, what's wrong with their credit that they aren't buying a house themselves? Lewisville is not a $2k rental market... maybe Flower Mound, Valley Ranch, or Grapevine in that area, but not really Lewisville...
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