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some pay rent,some pay mortgage,the only difference is interest of mortgage payment is tax deductible ,while rent is only tax deductible if you run a business from home.and you do not build up equity.
Owning a home is more than mortgage ,there is property tax,there is homeowner insurance )private and FEMA),some also insure their appliances and pipes (gas,water,sewage)and water heater.
Then comes hiring someone to mown lawn,remove cinchbugs,fungus,weeds,fireants,snails,snakes.
You could have rats,raccoon,squirrel in the attic chewing and ****ting.
if you live in a subdivision,there is annual homeowner fee and bylaws.
there are also little things here and then you have to buy and do yourself-touch up painting,caulking,decorating,buying misc tools,like soaker HOSE,spray,axe,garden scissors,ladder,tapes,extension cord ,etc etc .
your water heater needs to be flushed,your garage door opener requires maintenance,your dishwater will conk out after x number of years,so will your water heater which could ruin your ceiling when it broke,your A/C coulc fail as well,termites ,ants,gekko could also appear uninvited.
Oh,fences in the backyard,that could cost you 4 figures easily.
HAVE A NICE DAY !
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,569,440 times
Reputation: 16693
Quote:
Originally Posted by mojo101
some pay rent,some pay mortgage,the only difference is interest of mortgage payment is tax deductible ,while rent is only tax deductible if you run a business from home.and you do not build up equity.
Owning a home is more than mortgage ,there is property tax,there is homeowner insurance )private and FEMA),some also insure their appliances and pipes (gas,water,sewage)and water heater.
Then comes hiring someone to mown lawn,remove cinchbugs,fungus,weeds,fireants,snails,snakes.
You could have rats,raccoon,squirrel in the attic chewing and ****ting.
if you live in a subdivision,there is annual homeowner fee and bylaws.
there are also little things here and then you have to buy and do yourself-touch up painting,caulking,decorating,buying misc tools,like soaker HOSE,spray,axe,garden scissors,ladder,tapes,extension cord ,etc etc .
your water heater needs to be flushed,your garage door opener requires maintenance,your dishwater will conk out after x number of years,so will your water heater which could ruin your ceiling when it broke,your A/C coulc fail as well,termites ,ants,gekko could also appear uninvited.
Oh,fences in the backyard,that could cost you 4 figures easily.
HAVE A NICE DAY !
Don’t forget appreciation. My house went up almost 200k in 3 years from 460k. My property tax is 1800. I live in a nice 5000 sq ft home and live in 4000 sq ft and rent out the other 1000 sq ft below me. My net cost for mortgage, tax, insurance, hoa is about 800 a month. To rent an apartment 1/3 the size of my house is about 1400.
I’ve replaced two water heaters in 3 years and I mowed my own lawn a total of maybe 10 times this year and trimmed bushes twice.
Best of all I can do almost anything I want with my house and not be limited to what the landlord allows.
A lot of the other stuff I won’t have to do for a long while. When it comes up it will more than be covered by the $21,600 saved not paying rent in three years. I won’t count the 200k in appreciation or the tax write off I get from the mortgage.
Enjoy your day.
good for you,while counting your unrealised gain of your house and your realised rental income,please as a good business person,ALWAYS PAY YOURSELF and deduct that from your gross income.
how much should you pay a lawn man to do what you do in your area?
How do you like playing landlord ?and spend extra time and forms to report to IRS.
They are not hard,but they do take time,so PAY YOURSELF,dont forget pay Uncle as well.
BTW,does your insurance co charge more since you have tenant?
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,569,440 times
Reputation: 16693
Quote:
Originally Posted by mojo101
good for you,while counting your unrealised gain of your house and your realised rental income,please as a good business person,ALWAYS PAY YOURSELF and deduct that from your gross income.
how much should you pay a lawn man to do what you do in your area?
How do you like playing landlord ?and spend extra time and forms to report to IRS.
They are not hard,but they do take time,so PAY YOURSELF,dont forget pay Uncle as well.
BTW,does your insurance co charge more since you have tenant?
Not sure if you are talking to me, but if you are:
Landlord not a big deal. Depending on what’s going on I spend about an hour or two a month on all my rentals combined. The property manager does all the work.
I cash out refinanced some of my rentals I spent another 6 to 8 hours per loan doing paperwork and signings. In each case I pulled out the total cost of what I paid for the rental in full and generally and an extra 20 to 60k cash to pocket so I wouldn’t consider those as having unrealized gain. In all cases rents still covered all expenses with a small cash flow.
Unrealized gain from my house can be taken with a heloc if I want.
Time for forms to irs, my cpa handles all that and I send the check.
Insurance for my renter in my home is the same. They also carry renters insurance.
Not sure on the lawn man question.
Paying myself? As a sole owner I keep what left after all expenses paid out and taxes.
Your water/sewage is for 3 month. No way in hell you're spending $170 a month on water/sewage in a 1400 sqft home. I spend 200 every 3 months avg and our house is 6000 sq ft and i have sprinklers on front and back yards.
We have a funky water system here called Blu Granite Water. They are very, very expensive. Also being in the south my sprinkler system (2-3 times a week) is the overall culprit but my lawn looks awesome.......LOL.
.02%. Our house is paid for and we pay $1600/year taxes on a 2500 sq foot home on 3 acres.
You make $8,000,000 annually? Not bad.
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