Thoughts on Renting out a SFH with a Fireplace and Creek in Backyard?? (tenant, 5%)

[oldhousegirl]

Hey guys. Wanted to throw this out and get opinions. Though it seems pretty clear. But someone may have an idea that could change things. Have a SFH in the sun belt. Great solid house 3/2. Rehabbed it with the original intent to keep it long term as a base. Had toyed with the idea of renting it out but due to some pretty glaring things that I view as possible liabilities have not.

Like elsewhere it's a hot real estate market. We could sell it and do pretty good I think. Then we'd move to a different state and get a small condo or rent until the market cools. Not a good time to be a buyer at all.

I guess the fireplace could be covered somehow. The house is all brick, 60's era and solid as a tank. The fireplace is one of those where it takes up the entire wall with exposed brick on the kitchen side with the hearth and niches on the other side of the wall into the family room. The creek is about 100 feet from the house and about 15 feet down from the edge. It runs the length of the backyard and is wooded.

Thanks!!

[Diana Holbrook]

Lots of people rent homes on waterfronts and creeks that have fireplaces.

Ask your insurer or call around for rental policies and see what it would cost to insure it, and then see if it pencils out.

[MortonR]

Look at the numbers. If you're renting, you'll want a CAP above 7% or it's likely not worth it.

https://www.calculator.net/rental-pr...alculator.html

RM

[oldhousegirl]

Originally Posted by Diana Holbrook

Lots of people rent homes on waterfronts and creeks that have fireplaces.

Ask your insurer or call around for rental policies and see what it would cost to insure it, and then see if it pencils out.

Originally Posted by MortonR

Look at the numbers. If you're renting, you'll want a CAP above 7% or it's likely not worth it.

https://www.calculator.net/rental-pr...alculator.html

RM

Thank you both. LOl. Of course Diana Holbrook you are right

[GoldKona]

Originally Posted by MortonR

Look at the numbers. If you're renting, you'll want a CAP above 7% or it's likely not worth it.

https://www.calculator.net/rental-pr...alculator.html

RM

Cap rates are a valuation metric. They tell you what investors are paying for NOI. In a 10% market they paid $10 and in a 5% cap rate market they paid $20. A cap rate DOES NOT tell you if a property will be profitable. Also SFR's can be valued by the more accurate sales comparison method and there is no reliable source for SFR cap rate comps.

[adjusterjack]

Originally Posted by oldhousegirl

Had toyed with the idea of renting it out but due to some pretty glaring things that I view as possible liabilities have not.

Former landlord here. If you've never been a landlord don't start now. You might get lucky and have a great tenant with never a problem. But the odds are against you. Read the nightmare stories on the Renting Forum.