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Old 09-13-2019, 08:40 PM
 
194 posts, read 36,488 times
Reputation: 458

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Quote:
Originally Posted by Nik4me View Post
Or you could try to foster a child or 2 if you are fit to go through a training programs and qualify? You get paid.
r
You should really rethink this part...
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Old 09-14-2019, 07:34 AM
 
Location: Western Washington
9,428 posts, read 8,674,062 times
Reputation: 16226
Quote:
Originally Posted by Diana Holbrook View Post
What type of loan do you have, and how long have you had it?

The question is whether you took part in any programs that require you to be an owner-occupant.

Home loans are a different thing than commercial/investment loans that people get to buy rental properties.

Your insurance will have to change to reflect it as a rental. This will cost a bit more. It will also flag your lender that you're not living there IF your lender is currently paying insurance, so it will matter if it's OK with them if you move out.

People do this all the time. But the thing to remember is, it works until it doesn't. If there is a problem... if there is a fire, this is where things can snowball on you if your insurance doesn't cover rentals and your mortgage is still due.


Who is Mr. whats-his-name?
Quote:
Originally Posted by Hemlock140 View Post
For several reasons I would not suggest this. It may not be that easy to park. Very few RVs are small enough to fit in a garage. Even parked legally on a street someone living nearby may call it in as suspicious, especially these days with so much attention to the homeless using them. If you manage to find a decent used RV for $20,000 it will take two years of that rental income to break even. That doesn't include the cost of any repairs to the house, or any months with no tenant there. Better to take in a boarder in one of the bedrooms for $400, or use the money you would have spent on the RV to rent a room in someone else's house for $400 for a net income increase of $400.
Reread both of these posts.

You are considering this as a means of making an additional $1600/month, but it wonít be anywhere near that. What happens when you get a bad renter that causes $20,000 in damage to your house? Or simply refuses to pay the rent?

Mortgage, insurance, RV operations costs (higher than a car), will all eat into that. Essentially you would be trading a reasonably comfortable life in your house for an uncomfortable life in an RV for $100-$200/month, if that.

If you want to make money by being a landlord, rent out your spare room. It will give you more money than the house/RV swap.
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Old 09-14-2019, 07:39 AM
 
Location: Up North
4,720 posts, read 1,197,233 times
Reputation: 2753
I would actually pay one of those companies to manage the rental situation for me.


I would be entirely as hands off as possible with the situation.


Why do this? Because I don't believe in stocks/bonds...my house IS my investment. I only believe in property as investment. I would likely cash out on the IRA. The global overlords are going to destroy it at their leisure anyways somewhere down the road, I bet.


This is the house that has been in my family for 40 years. I have inherited a third in equity in the home. It's too big for me - 2k sq ft...I don't hardly use a third of the house.


You've all brought up some points I hadn't thought about, thank you.
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Old 09-14-2019, 08:06 AM
 
Location: Western Washington
9,428 posts, read 8,674,062 times
Reputation: 16226
Quote:
Originally Posted by Kavalier View Post
I would actually pay one of those companies to manage the rental situation for me.


I would be entirely as hands off as possible with the situation.


Why do this? Because I don't believe in stocks/bonds...my house IS my investment. I only believe in property as investment. I would likely cash out on the IRA. The global overlords are going to destroy it at their leisure anyways somewhere down the road, I bet.


This is the house that has been in my family for 40 years. I have inherited a third in equity in the home. It's too big for me - 2k sq ft...I don't hardly use a third of the house.


You've all brought up some points I hadn't thought about, thank you.
Right. I forgot about your weird aversion to stocks and bonds.

Would I be correct in assuming your real goal is to cash out the IRA because you donít like owning an asset in that form?

Normally I would then suggest you invest in a REIT, but that might be too esoteric for your tastes. You could find partners and purchase an investment rental property together. Or you could dump the IRA funds into your current house and reduce your mortgage term.

You donít have enough cash flow to invest in a second property on your own.
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Old 09-14-2019, 09:33 AM
 
Location: North State (California)
42,402 posts, read 3,231,560 times
Reputation: 13875
As has been mentioned, you will not be making much money out of this deal, if you rent for $1600, half of that will go to your mortgage, currently at $800, & that & your home insurance will go up. Your auto insurance will rise too, as RVs are not cheap to insure. They are also not cheap to run & maintain. So to give up your comfortable home for a few hundred does not seem like a good idea.

If you want more money,
then
1) rent out a room,
2) get a second job, or,
3) decrease current expenses in other ways.

Plus what if you get a picky tenant, one that wants repairs every month? Nonsensical repairs etc.
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Old 09-14-2019, 10:14 AM
 
245 posts, read 122,786 times
Reputation: 454
Quote:
Originally Posted by Kavalier View Post
Hopefully I'll get some responses here before Mrwhats-his-name chimes in to tear me a new -ss....



I have a situation I would like some opinions on. In a nutshell:


I have a $40K IRA
About $40K in cash
Income of about $2K a month (I know, not much)
A mortgage of $800/mo

If I bought a decent RV and had the above information the same, would that be a possible scenario I could implement?


To give an idea, the similar sized house kitty-corne to mine rents out for about $1600/mo, and it's about the same size (2K square ft).


I hope this is the right forum to ask the question.

Could you do a roommate instead?

The RV is black hole for money and LEGAL free camping spots few and far between.

Finding a roommate and adding a bit to your income would be the better path. I understand being nervous but overreacting and going to an extreme plan B won't help you.

Have you used a budgeting app? That will help you figure out where precious $$ are going. Money respects planning.

I like Dave Ramseys app - EveryDollar (on apple/android app store)

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Old 09-14-2019, 10:28 AM
 
Location: Western Washington
9,428 posts, read 8,674,062 times
Reputation: 16226
Speaking of flow, consider that if you live in an RV you will need to dump your waste tank once a week or so. Do you really want to spend Saturday mornings dealing with sewage? That is a cost you need to address along with all of the others.
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Old 09-14-2019, 10:58 AM
 
Location: Scottsdale, AZ
8,398 posts, read 5,151,881 times
Reputation: 30873
Quote:
Originally Posted by evening sun View Post
Won't you need to go to RV parks to dump the sewage & get fresh water etc?
Dumping is not the big deal some people make it out to be. I know of a free dump site not 10 miles from here, for example. He could get fresh water from his own house, if needed. Just add a clause to the lease.

Quote:
Re WM, some allow parking, others do not.

Cracker Barrel allows it. Many truck stops allow it.
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Old 09-14-2019, 11:03 AM
 
194 posts, read 36,488 times
Reputation: 458
Quote:
Originally Posted by Kavalier View Post
I would actually pay one of those companies to manage the rental situation for me.


I would be entirely as hands off as possible with the situation.


Why do this? Because I don't believe in stocks/bonds...my house IS my investment. I only believe in property as investment. I would likely cash out on the IRA. The global overlords are going to destroy it at their leisure anyways somewhere down the road, I bet.


This is the house that has been in my family for 40 years. I have inherited a third in equity in the home. It's too big for me - 2k sq ft...I don't hardly use a third of the house.


You've all brought up some points I hadn't thought about, thank you.
Cashing out the IRA would be really dumb, to be honest, you'd just be handing the government free money.

Using a property management company only cuts into your income off the property. Again, not very smart.

Rent out a room for $500. Get a second job for 10-15 hours a week and there's another $400/mo. If you can get a restaurant job that sometimes comes with free meals too, which is more savings.

Now you're up $1000/mo and can stash at least 50% of that away in savings. after 10 years, you've got another $60K.
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Old 09-14-2019, 11:33 AM
 
Location: Portland, Oregon
10,068 posts, read 16,866,643 times
Reputation: 6492
As others have mentioned renting out a room would be your best bet. See a lawyer to draft up a roommate agreement.

Did I see that you have others on the title because it is an inherited home? If that is the case I doubt that you can move out and rent the house.
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