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Old 03-20-2018, 11:29 PM
 
137 posts, read 56,485 times
Reputation: 657

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Wow, you guys know your stuff!

We've been renting the condo out through VRBO for the 8 years we've owned it, and that's paid for all the expenses. We're unhappy with it for a variety of reasons, and while it's been great to have for the few weeks we've used it every year, I REALLY don't want to live there for four or five months at a time. It won't be an issue until next winter at the earliest, and we can certainly make do there for one year and maybe spruce it up if we do decide to sell.

Quote:
Originally Posted by Electrician4you View Post
You don’t sell paid for property. You go get a 80% equity loan to get liquidity, rent it out for 8 months out of the year and use it for 4 months. The loan is now a deduction as the property is a rental for 9 months.
The refi should give you plenty of cash. Set 2 years worth of payments away in a account and use that to pay the mortgage. Use the rest to buy a house.
If the values go up significantly refi again pull the equity out and repeat.
You can specifically market yourself in short term rentals only for people who are moving in for a job and need a short term lease. You can also charge more than going rate as you will be one of the few doing it.
Get a realtor to help you out for a fixed rate. Someone will do it.
Savvy advice, although I do wonder if being Canadian would restrict us from getting a mortgage or equity loan. We'll ask our real estate agent the next time we're in AZ.

Quote:
Originally Posted by blueherons View Post
Don't sell because Uncle Sam will take 10% of the sales price so you will automatically lose $13,000 worth of equity since you are not a US citizen the minute you sell.
I have an unverified understanding that if you buy another place within a certain amount of time, you can avoid that tax? Don't quote me on that. Yeah, it's going to hurt when we finally have to pay that tax. We're hoping we'll keep the next place until we drop dead and then the kids can worry about it.
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Old 03-20-2018, 11:35 PM
 
Location: Somewhere in America
12,305 posts, read 10,044,600 times
Reputation: 20460
Quote:
Originally Posted by Posh66 View Post
I have an unverified understanding that if you buy another place within a certain amount of time, you can avoid that tax? Don't quote me on that. Yeah, it's going to hurt when we finally have to pay that tax. We're hoping we'll keep the next place until we drop dead and then the kids can worry about it.
You should speak to a tax accountant in AZ. Since you're not a US citizen, there may be other tax implications. There are a variety of fees paid when you sell real estate in the US.
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Old 03-21-2018, 12:02 AM
 
Location: El Pueblo de Nuestra Señora la Reina de los Ángeles del Río Porciúncula
13,545 posts, read 14,037,847 times
Reputation: 9663
Quote:
Originally Posted by OHNot4Me View Post
One more consideration I didn't see mentioned - right now, interest rates in the US are still low, and that may mean more qualified buyers are out house hunting now.

In a few years, there's no telling where interest rates may be; thus, the pool of qualified buyers may be much smaller.

...

As for renting a house for four months every year, perhaps an extended stay hotel/motel might work out better?
The key words are "no telling where interest rates will be." I don't believe in market timing. I believe if you want to buy or sell a house the right time is NOW.

I priced extended stay hotels and they were too pricey for me. (see below)

Quote:
Originally Posted by Tominftl View Post
Sell and buy an RV. Then you won’t be limited to Phoenix. You can travel until you find the perfect place for you. I’m sure you are paying condo fees and not there? Seems like a waste of money to me....
That's what I did, got a 32' 5th wheel and moved to Santa Fe. I discovered that the City Different wasn't for me, too small. I went back to LA and lived in a local RV park for 2+ years until I found and bought my dream house.

I hated living in the trailer but it was paid for and my space rental was about $700/month, much cheaper than any alternative. I got so sick of it that I priced extended stay places and then I shut up.

Quote:
Originally Posted by Electrician4you View Post
You don’t sell paid for property. You go get a 80% equity loan to get liquidity, rent it out for 8 months out of the year and use it for 4 months. The loan is now a deduction as the property is a rental for 9 months.
You're my friend and I know you have forgotten more than I'll ever know about being a landlord, but I think your idea of renting out a property for 8 months and living in it 4 months is just as bad. You're not going to find anybody to rent it for 8 months, that's just not practical.

I'm sure glad I have only one property left. My last lease terminates end of November and my last property will go on the market Jan. 2nd. That's what I said about market timing. It's going up for sale on that day no matter what the market is. And finally I'll be free.

Quote:
Originally Posted by Posh66 View Post
Wow, you guys know your stuff!

We've been renting the condo out through VRBO for the 8 years we've owned it, and that's paid for all the expenses. We're unhappy with it for a variety of reasons, and while it's been great to have for the few weeks we've used it every year, I REALLY don't want to live there for four or five months at a time. It won't be an issue until next winter at the earliest, and we can certainly make do there for one year and maybe spruce it up if we do decide to sell.
Electrician is one of the best. That's my opinion as a less skilled landlord.

I have an irrational desire to terminate my tenant and turn my rental into a second home. (Phoenix) I'm not sure why I want a second home though... Maybe just so I can say I have a second home. Actually I can't think of anything I can do in PHX that I can't do in LA except watch a haboob. I haven't seen one yet. Doesn't sound like much fun.
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Old 03-21-2018, 08:25 AM
 
15,824 posts, read 18,434,141 times
Reputation: 25604
Lots of variables that complicate any answers to your questions.

Are you U.S. citizens? Are you taxed in Canada for selling your non-primary residence? Do you own the home that you reside in in Canada?
Are you sure that you can find a rental that would allow you a 4 month lease annually?
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Old 03-21-2018, 09:15 AM
 
Location: El Pueblo de Nuestra Señora la Reina de los Ángeles del Río Porciúncula
13,545 posts, read 14,037,847 times
Reputation: 9663
Quote:
Originally Posted by JanND View Post
Are you sure that you can find a rental that would allow you a 4 month lease annually?
I think we have settled this issue. Both Electrcian4You and I are landlords, and we both told the OP that finding a 4 month rental house isn't going to happen. Landlords can't afford to rent for such a short period. The start up and close out costs and effort are too steep for such a short rental period.

I had an RV for a while and that was totally practical. I'm pretty sure extended stay is too expensive. I think the RV is the most affordable and practical, or maybe get a minimalist apartment and let it sit empty the part of the year you aren't there.
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Old 03-21-2018, 09:19 AM
 
Location: AZ
589 posts, read 303,945 times
Reputation: 2406
Sell. Now.
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Old 03-21-2018, 09:47 AM
 
Location: El Pueblo de Nuestra Señora la Reina de los Ángeles del Río Porciúncula
13,545 posts, read 14,037,847 times
Reputation: 9663
Quote:
Originally Posted by Bygeorge View Post
Sell. Now.
That's what I always say. Forget about timing. If you have a house you want to sell, just sell it. Anybody who thinks they know what tomorrow's market will be like is delusional. It could be better, worse or same.

If you have a house to sell, just get with it.
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Old 03-21-2018, 11:23 AM
 
5,661 posts, read 3,227,080 times
Reputation: 4462
Quote:
Originally Posted by Lovehound View Post
I'm a landlord and my rental houses are in Phoenix.

Forget renting a house for four months a year. Ain't gonna happen. The hassle of moving a tenant in, and then out, far exceed any profit I might make. And I have to pay my Realtor $1,000 flat fee for each new rental contract.

I once had this exact scenario, they wanted to rent my house for four months while house hunting. I flat turned them down. About a week later they decided to lease it for a year. They stayed 1-2 years and then bought their own house. BTW they were good tenants!

Nobody will rent you a house for four months unless you pay the equivalent of a full year's rent. I doubt even an apartment would do that.
VRBO or AirBnB.
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Old 03-21-2018, 01:07 PM
 
137 posts, read 56,485 times
Reputation: 657
Quote:
Originally Posted by Lovehound View Post

I have an irrational desire to terminate my tenant and turn my rental into a second home. (Phoenix) I'm not sure why I want a second home though... Maybe just so I can say I have a second home. Actually I can't think of anything I can do in PHX that I can't do in LA except watch a haboob. I haven't seen one yet. Doesn't sound like much fun.
Hahaha, I'll visit you in prison if you decide to terminate your tenant.

We got caught in that giant haboob a couple years back! We were in a restaurant and asked the waitress why it was so dark outside, and she said, "Oh, don't worry, it's just a sand storm. Happens all the time." So we drove home. This was not just a sand storm, and it was pretty amazing to experience. Luckily as Canadians, we've driven in about a million blizzards, so we were as unfazed as we could be under the circumstances.
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Old 03-21-2018, 02:15 PM
 
16,476 posts, read 17,501,756 times
Reputation: 23521
Quote:
Originally Posted by Lovehound View Post
The key words are "no telling where interest rates will be." I don't believe in market timing. I believe if you want to buy or sell a house the right time is NOW.

I priced extended stay hotels and they were too pricey for me. (see below)


That's what I did, got a 32' 5th wheel and moved to Santa Fe. I discovered that the City Different wasn't for me, too small. I went back to LA and lived in a local RV park for 2+ years until I found and bought my dream house.

I hated living in the trailer but it was paid for and my space rental was about $700/month, much cheaper than any alternative. I got so sick of it that I priced extended stay places and then I shut up.


You're my friend and I know you have forgotten more than I'll ever know about being a landlord, but I think your idea of renting out a property for 8 months and living in it 4 months is just as bad. You're not going to find anybody to rent it for 8 months, that's just not practical.

I'm sure glad I have only one property left. My last lease terminates end of November and my last property will go on the market Jan. 2nd. That's what I said about market timing. It's going up for sale on that day no matter what the market is. And finally I'll be free.


Electrician is one of the best. That's my opinion as a less skilled landlord.

I have an irrational desire to terminate my tenant and turn my rental into a second home. (Phoenix) I'm not sure why I want a second home though... Maybe just so I can say I have a second home. Actually I can't think of anything I can do in PHX that I can't do in LA except watch a haboob. I haven't seen one yet. Doesn't sound like much fun.
I understand what you’re saying. Truthfully it’s done quite a bit. Pretty much all you find in Newport Beach Ca n is 9 and 3. Summer is Airb&b the rest is a winter rental. What I was suggesting is market yourself as a short term rental to people that are moving in the area and need some time to look for a house or contract work etc.
And just because it doesn’t work for you or me it doesn’t mean that it won’t work for someone. I actually contemplated doing such thing with my renta that was recently vacant. It say empty for about 5 months as the applicants I was getting weren’t cutting it. So I thought what if I did short term rentals for say homeowners who sold and are house shopping. Or people who are moving here and don’t want to get locked in a year lease. Sure it may have some growing pains but other than apartments most places do not offer short term rentals.
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