Rent or Cash Out?

Investing is a hassle. That's one of the few things stopping me. There aren't that many safe investments with a decent yield, and nothing right now that's comparable to the appreciation I'm getting on this place, so if I sell it, sure, maybe I'll take care of a couple of things on my primary house that I've been hesitant to spend money on, but after that, I'm going to pay the tax on the profit and stick the money in the bank. It's nice to have that kind of cushion, but not financially smart. Maybe roll it into lakefront land. Maybe I should talk to an accountant.

 

Sell.

 

Depends on the time frame. Also, no need to fix / paint / pay property taxes on other investments. (see - your bathroom.)

But hey - do whatever. Investments that I have to either pay for or work for to keep them from losing value are not my preference.

In Sadic's case, if he bought it to flip, now's his chance. Having a lady arrive unsolicted at his door with $$ is something he can't turn down.

 

brylcream?

 

a little dab'll do ya

 

How much are you asking? How much land are you talking about. The trailer's cost is negligible considering it is a trailer and worth the same as the furniture inside.

 

Either option will be better than having it sit there needing stuff. If I rent it, at least having someone live in it will keep it at a certain level of maintenance, and I'd only have to worry about repairs, but there are taxes and all that every year. Bottom line is the $500+ a month I may get in rent, even if it's cash is not going to all end up in my pocket when it's all said and done, and it's not exactly life changing money to start with. It's basically a way to keep and let the place appreciate without having to pay to keep it. Niblock just bought 180 acres right near the place and they're widening Hwy 49 up to Mt Pleasant, so it's like it's a race between when the value of the place really explodes or the overall real estate bubble bursts...

Even when I'm not physically working on the place, it does somewhat stress me out knowing it's there and that I need to finish it. It would be nice to pare down my maintenance needing things, especially since I love my motorcycles and drive shitty cars.

 

If you owe money on it you are paying out interest every month....if its paid for obviously you arent. So, being paid for all income from rent goes to up keep, taxes/insurance etc. with a reasonable amount of profit. Plus you said that the property value would only increase. You can always sell it later since increasing values reflect that people want/need that property. (and, at least in ohio, all repairs on a rental are tax deductible)

If you had owed money on it I figured that the interest being paid along with the other expenses wouldn't justify financially coming out ahead.

But what do I know.......

 

c'mon meat...sadic want to play the role of dego land lord. it would be a dream come true.

 

If you sell it, you're gonna have to pay capital gains.

Income per month is gravy, being free and clear, and you still own the property that, in the future, will more than likely sell for more so you get that PLUS what you get every month now, less expenses to fix up.

Expenses are covered thru the rent to you, tax shelter of sorts also, and fixing up with rent paid makes property sell for even more down the road.

It shows as an asset on your net worth balance sheet, and you can borrow money against it at lower int rate and pay off other debts if you have any.

There is no better investment than real estate, considering the returns versus 'safety' and 'stabilization'.

If you want the cash now, borrow against it with less of a payment than the rent (@ a 10-15% vacancy and collection loss figure), and take approximately 75-80% of the rent to pay back loan payment. In other words, borrow the cash- with a payment of 75-80% of what the rent brings.
Don't borrow the money on it until you have taken the rent and 'put into' it what maintenance it will require during the length of the loan you take out on it.