Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Pennsylvania > Pittsburgh
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 03-29-2014, 07:48 PM
 
19 posts, read 26,760 times
Reputation: 11

Advertisements

Ok so here is a unique situation and question. I am currently in the position were I could buy a new home and rent out my current home I am living in. My current home I am in is bought and paid for ( I'm only 30 so I am looking to do this for retirement funding) and I am thinking on moving and possibly renting out my current home to help set money aside for retirement and help pay for my next mortgage on a new home.

Has anyone ever done this?

Any pros or cons anyone can suggest or recommended?

Any helpful hints on how to do this and what suggestions anyone has for a realtor and account to manage the bills and taxes?

Any and all help is appreciated!!
Reply With Quote Quick reply to this message

 
Old 03-29-2014, 10:50 PM
 
43,011 posts, read 107,755,385 times
Reputation: 30711
I recommend reading this thread all the way through to the end to understand the potential cons:

http://www.city-data.com/forum/pitts...ant-month.html
Reply With Quote Quick reply to this message
 
Old 03-30-2014, 04:14 AM
 
Location: Pittsburgh
1,491 posts, read 1,450,836 times
Reputation: 1067
there are lots of books on landlording. If you are choosing to use a property management company on a singular single family home, I doubt there is going to be a whole lot of juice left in the apple at the end of the month. Are you handy at all? you dont need to be able to do all repairs yourself, but being able to do simple things can really make a difference in your cashflow. calling a service person every time anything minor comes up can really start to add up. All in all, I feel owning a rental property or two is a no brainer for a younger person. Not sure I would suggest someone in their 60's+ to jump intp it, but if you have the energy and keep your eye on the prize that you are building wealth and making money, the small issues that come up become pretty insignificant

feel free to shoot me a DM if you want to discuss specific numbers to your situation.
Reply With Quote Quick reply to this message
 
Old 03-30-2014, 02:06 PM
 
Location: Pittsburgh
225 posts, read 322,702 times
Reputation: 122
I would say go for it. Out of college I bought a three unit. I lived in one and rented out the others. It has been, by far, the best investment I've made. Yes, being a landlord can come with its headaches, but it can also be very rewarding.

In response to the thread that Hope re-posted; my reaction is to not put yourself in those types of situations. Treat your tenants well, but make sure you have a very explicit and thorough lease agreement and stick to it.
Reply With Quote Quick reply to this message
 
Old 03-30-2014, 03:13 PM
 
Location: 15206
1,860 posts, read 2,569,197 times
Reputation: 1301
There are too many specific factors to consider than to ask everybody on here for their advice. Missing is property value, location, potential rental amount, debt amount, etc.

It all depends on the house and the rental amount as well as your debt service that you still have.

If it is a 250k house with mortgage and you're only going to get $1600 per month, then i'd be hesitant unless you see future appreciation.

Or it might make more sense to sell it and to buy a $250k 3 unit property that will cash flow better and have less vacancy risk.
Reply With Quote Quick reply to this message
 
Old 03-30-2014, 06:20 PM
 
Location: Pittsburgh
7,541 posts, read 10,219,386 times
Reputation: 3510
Converting your current residence into a rental would definitely have tax consequences as far as depreciation/amortization as well as capital gains when you sell the property.

You should inquire with your accountant as to how much this is likely to cost you as far as your taxes.
Reply With Quote Quick reply to this message
 
Old 03-30-2014, 06:37 PM
 
Location: Pittsburgh
1,491 posts, read 1,450,836 times
Reputation: 1067
Quote:
Originally Posted by I_Like_Spam View Post
Converting your current residence into a rental would definitely have tax consequences as far as depreciation/amortization as well as capital gains when you sell the property.

You should inquire with your accountant as to how much this is likely to cost you as far as your taxes.
depreciation is a good thing for rental properties in most cases. when you sell, you recapture the deductions, but while you own it, it will reduce your tax burden.

if you sell within 3 years of moving out ( if you lived there for at least 2 years) you will have zero capital gains tax on the property. you can also 1031 any proceeds to defer taxes indefinitely.

you will also write off a lot of items against your rental income and w2 income. property tax, insurance, repairs, management, utilities you may pay, etc. rental property can be a great tax shelter.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Pennsylvania > Pittsburgh

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top