Is Anyone Noticing The Denver Housing Market Turning Up Again In The Past Month? (renting, houses)

[randomparent]

I have no intention of selling. Where the heck would I go?

[davebarnes]

Originally Posted by randomparent

I have no intention of selling. Where the heck would I go?

Live in your double wide.
His/Hers cars in the Walmart parking lot.

[SkyDog77]

Originally Posted by DenverBound41

So would people sell in this crazy market or keep a current residence as a rental that will cash flow approximately $800-$1000 month as of now? House was purchased for $199K in 2010 and would more than likely list for ~ $315K (or perhaps more if this spring/summer gets even more crazy).

You need to be looking at this like any other investment. How much equity do you have sitting in it and what kind of annual return are you getting on your cash? Do you anticipate any large maintenance expenses coming up(roof, etc.)?

Since I don't know your equity situation, I'm only guessing that you put about 20% down and don't have any major expenses coming up. It sounds like you are getting about a 6.5% return using your $800 a month number. That's pretty good. Can you do better somewhere else?

[JrzDefector]

Originally Posted by SkyDog77

You need to be looking at this like any other investment. How much equity do you have sitting in it and what kind of annual return are you getting on your cash? Do you anticipate any large maintenance expenses coming up(roof, etc?).

Since I don't know your equity situation, I'm only guessing that you put about 20% down and don't have any major expenses coming up. It sounds like you are getting about a 6.5% return using your $800 a month number. That's pretty good. Can you do better somewhere else?

And factor in how much your time is worth. Selling a house and moving elsewhere is a labor-intensive activity, and it includes the risk of not knowing if you will be entirely happy in your new situation. I hope to God I never have to do it again, personally. It was nerve-wracking and exhausting, even without considering the financial aspects.

[emm74]

Also factor in whether you want to be a landlord. Will your cash flow cover a professional property management service or do you have the time and the ability to provide those services? Personally, I don't want to be landlord and I would sell, take my equity and put it into a more passive investment. But multiple property ownership is a great situation for some.

[DenverBound41]

Thanks for the replies all. My wife and I(plus an infant) are moving to Stapleton(Northfield new build) at the end of the year and we are trying to figure out what the best move is for our current house.

[JrzDefector]

Originally Posted by emm74

Also factor in whether you want to be a landlord. Will your cash flow cover a professional property management service or do you have the time and the ability to provide those services? Personally, I don't want to be landlord and I would sell, take my equity and put it into a more passive investment. But multiple property ownership is a great situation for some.

My father has been a landlord for 30 years in Jersey, and it just seems like a needless hassle to me. He used to do it to diversify his income stream, but I really do think it was more stress than it was worth to him and he could have simply diversified his investment portfolio a bit more or maybe bought farmland and leased that instead.

The places he owns have been trashed more than once and there's always something going wrong with the property.

[Timmyy]

I was once a landlord and I will never be again. It was a nightmare.

[Mike from back east]

Originally Posted by Timmyy

I was once a landlord and I will never be again. It was a nightmare.

Never did it, won't do it. Just reading all the horror stories is enough to stop me from being a landlord. I'll put my money in the stock market, averaging 8.5% gain per year over time, can sell it off and cash out in minutes.

[SkyDog77]

I'm a landlord. I will always be a landlord. My family has been doing it for 3 generations. I like it.