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Old 05-05-2021, 10:18 AM
 
28,115 posts, read 63,680,034 times
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Property Tax is 1350 per month... rent 2000 month.

Maintenance requirement is higher due to western WA climate...
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Old 05-05-2021, 11:30 AM
 
1,066 posts, read 892,612 times
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Quote:
Originally Posted by Ultrarunner View Post
Property Tax is 1350 per month... rent 2000 month.

Maintenance requirement is higher due to western WA climate...
Seems unlikely.
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Old 05-05-2021, 11:31 AM
 
Location: Vancouver, WA
8,214 posts, read 16,703,091 times
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Quote:
Originally Posted by Ultrarunner View Post
Property Tax is 1350 per month... rent 2000 month.

Maintenance requirement is higher due to western WA climate...
Whoa, with market values rising, it really makes one question the tradeoff of renting vs. selling. I know some have no desire or plans to do so. But with rental rates seemingly dropping while values and associated taxes increase simultaneously, it makes for a difficult situation with residential income properties.

Derek
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Old 05-05-2021, 11:50 AM
 
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It's almost as if renting a property for well below the market rate is a bad idea.
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Old 05-05-2021, 12:26 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,724 posts, read 58,067,115 times
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Quote:
Originally Posted by Transmition View Post
It's almost as if renting a property for well below the market rate is a bad idea.
Market rate for rents?
Market rate for equity / investment?


If I can't rent the joint for 1% of it's asset / resale value, then I have the wrong asset. (for 'income' property), or for any home I may need to rent, including my primary residence. (in case I have to move, am disabled or am unemployed, or have a medical event requiring long-term treatment or results in not being able to replicate my income... i.e. retired / laid off)

Thus if you pay $500k for a home in W WA, and rents are less than $5000/ month on equivalant or acceptable place, then definately rent and put your RE equity dollars to work elsewhere. (income tax free NV works well)

Some people just sleep better owning their home. I hope it's paid off and they have a few yrs taxes as a cushion.

My daily WA property taxes are $43/ day, up from >$3/ day. Nearly twice the highest house payment in my previous 50 yrs of home ownership.
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Old 05-05-2021, 01:43 PM
 
Location: WA Desert, Seattle native
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My prop taxes went up 35 percent this year. But most of it was because of a major school bond that recently passed in my city.
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Old 05-05-2021, 02:43 PM
 
1,066 posts, read 892,612 times
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Quote:
Originally Posted by StealthRabbit View Post
Market rate for rents?
Market rate for equity / investment?


If I can't rent the joint for 1% of it's asset / resale value, then I have the wrong asset. (for 'income' property), or for any home I may need to rent, including my primary residence. (in case I have to move, am disabled or am unemployed, or have a medical event requiring long-term treatment or results in not being able to replicate my income... i.e. retired / laid off)

Thus if you pay $500k for a home in W WA, and rents are less than $5000/ month on equivalant or acceptable place, then definately rent and put your RE equity dollars to work elsewhere. (income tax free NV works well)

Some people just sleep better owning their home. I hope it's paid off and they have a few yrs taxes as a cushion.

My daily WA property taxes are $43/ day, up from >$3/ day. Nearly twice the highest house payment in my previous 50 yrs of home ownership.
Can you show me a property anywhere in the country that is valued at $500k and rents for $5,000 a month?
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Old 05-05-2021, 03:59 PM
509
 
6,321 posts, read 7,048,872 times
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Quote:
Originally Posted by SusVelo View Post
Can you show me a property anywhere in the country that is valued at $500k and rents for $5,000 a month?

That was the rule of thumb for investment housing.


What does that tell you about the state of today's housing market??


I definitely need to raise my rental rates.
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Old 05-05-2021, 05:27 PM
 
28,115 posts, read 63,680,034 times
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There was a time when 1% of value or property value of 7 times gross was possible...

Last time I saw this was in certain markets 2009-12 with bank owned property.

My example may not be typical but it is real as a few weeks ago when I paid my Thurston county property tax.

Single family home with 3 additional homesites when bought... now due to wet land setbacks those 3 additional building sites evaporated and the value of land decreased... OK... I follow the logic but the value of the 4 bedroom home increased because it is now more exclusive??? All 1970's construction...

When I bought... it just happened my accepted offer coincided with the assessed value the previous owners established by winning their appeal...

18 months later I-747 was struck down and in one cycle property reassessment jumped 80% and went crazy after a speculator paid an outlandish price for nearby land with hopes of subdividing ..

The bottom fell out of the market and speculator walked... but damage done.

Scary when it happens as it is all based on guesstimate of value until property sells... but taxes are real and must me paid...

As for rental... I rent to military family on 3 year lease never thinking taxes would spike... so yes... 2k rent and $1350 monthly prop tax.

No idea what rent the home will bring at lease end in September??? $2500+/-
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Old 05-05-2021, 06:44 PM
 
Location: Portal to the Pacific
8,736 posts, read 8,671,426 times
Reputation: 13007
Quote:
Originally Posted by Ultrarunner View Post
There was a time when 1% of value or property value of 7 times gross was possible...

Last time I saw this was in certain markets 2009-12 with bank owned property.

My example may not be typical but it is real as a few weeks ago when I paid my Thurston county property tax.

Single family home with 3 additional homesites when bought... now due to wet land setbacks those 3 additional building sites evaporated and the value of land decreased... OK... I follow the logic but the value of the 4 bedroom home increased because it is now more exclusive??? All 1970's construction...

When I bought... it just happened my accepted offer coincided with the assessed value the previous owners established by winning their appeal...

18 months later I-747 was struck down and in one cycle property reassessment jumped 80% and went crazy after a speculator paid an outlandish price for nearby land with hopes of subdividing ..

The bottom fell out of the market and speculator walked... but damage done.

Scary when it happens as it is all based on guesstimate of value until property sells... but taxes are real and must me paid...

As for rental... I rent to military family on 3 year lease never thinking taxes would spike... so yes... 2k rent and $1350 monthly prop tax.

No idea what rent the home will bring at lease end in September??? $2500+/-
I would start looking at real estate sites to see what the rents are now. I would also limit the leases to 1 year so that you don't get locked into a rate for too long. My tenants requested 2 year and I refused. Indeed we were considerably under market and they knew it before I did. At this point if my taxes or HOA fees increase my lease increases by the same amount.
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