[1MOREMOD]

No too great of risk of finding my dungeon and grow rooms

[UncleWede]

Originally Posted by 1MOREMOD

No too great of risk of finding my dungeon and grow rooms

Don't you need new "recruits" all the time???

[1MOREMOD]

Yes the selection process could be incorporated into rental agreement I suppose. No family, no friends, no job but has money, young, women and so on.

[dr.mba]

Oh man,,, I would never rent out any space in my house.
I have a full basement that we are not utilizing at all but never even thought once of renting it out.

I think my wife would go ballistic if I even suggest it.

Mind you, I do not need an income boost as I do well on my own (my wife does not work even though she could). I have heard enough horror stories that whatever extra money I can potentially generate (whether 8, 9 hundred or even $1000) is not worth stressing over for me

M

[John 070]

Originally Posted by dr.mba

Oh man,,, I would never rent out any space in my house.
I have a full basement that we are not utilizing at all but never even thought once of renting it out.

I think my wife would go ballistic if I even suggest it.

Mind you, I do not need an income boost as I do well on my own (my wife does not work even though she could). I have heard enough horror stories that whatever extra money I can potentially generate (whether 8, 9 hundred or even $1000) is not worth stressing over for me

M

My wife does not work either since our son was born, and he is 30 mos. old. She wants to go back to work, and is waiting for the right time. We're not sure if that is kindergarten, hopefully sooner. He hasn't ever been to preschool yet, and is starting in August. That's a pretty nice monthly nut. People that I work with say 2 kids in daycare is like having 3 mortgages, the regular one, plus each daycare.

So for you to not need any extra income, wow, what a nice position to be in. When we were dinks and my wife was working, our income was more than double the median in our town and life was good. So to say we could use an income boost is an understatement....we also gave up $250 deductible, 90/10 coinsurance, $1000 max out of pocket health insurance, to go into a f****** HRA with a $3000 deductible (co puts $1,000 into the account, 80/20 coinsurance).

Back to the op's question, still would never rent out.

[bbbbmw]

What about Air BNB instead of roommates?

[zx10guy]

I wouldn't do it. But then again, I wouldn't buy a place where I was dependent or it would really help out immensely to get that rental income.

When I bought my current house, I was single. It was awkward when I got a knock on the door one day. It was one of the admins who worked for the builder I bought from. He had sub'd in for my primary sales lady so we had some interactions and he knew I was buying my house by myself. He asked if I would consider taking him in as a roommate. I said I would think about it but never called him back. Don't want to deal with the headaches.

I have a vacation property near the beach I bought 3 years a go. Everyone asks if I rent it out during the summer vacation season. I said heck no. House is brand new, and in many ways has nicer finishes than my primary residence. Again, I don't need the headaches of dealing with issues from renters.

I know everyone has good and bad stories. But I know of one personally where it ended up all bad. It was with an ex-girlfriend. She decided to buy this house as a rental property. She got a property management company involved. First set of renters were great. A couple of college girls who paid their rent on time and kept up the place...ie didn't destroy anything. Then they moved out. I don't remember if there was a renter in between the one that rented her house last. But the last guy was the one that sent my ex into a financial tail spin. She was getting behind on her mortgage payments already. Well, this guy that checked out with background checks and credit history caused more financial issues than he initially solved. On paper he looked good. Was an veteran and was receiving VA benefits which were to also pay for the rent. After about two months, he stopped paying. The management company kept saying he was waiting on some benefit payout which never came. After some more months, my ex was able to evict him after a court hearing. When the property management company went into the house to assess any damages, what they saw was just mind numbing. The guy decided to do a crappy paint job on various rooms in the house. He didn't pay for any heating oil so the radiator system was not running during the winter and the pipes froze. Ended up cracking the radiators in the house which required $6000 to repair. He also used space heaters to keep certain rooms warm. Because of the older wiring of the house, the load on the circuits caused electrical problems at the main panel. In the end, my ex was so far in the hole financially she had to let the house go into foreclosure.

There was also another incident where one of my good friends was renting out his townhouse in another state he moved away from. He wanted to rent the place to allow the housing market to recover a little before selling. He did all the checks everyone said to do here. The tenants ended up not paying rent. He had to go to court to evict. The tenants ended up trashing his house which BTW was new construction and only a couple of years old when he rented it out. I've been to his place before and it was really really nice. Don't remember how much it cost my friend to fix up all the damage but I seem to recall it being in the thousands.

[dr.mba]

Originally Posted by zx10guy

I wouldn't do it. But then again, I wouldn't buy a place where I was dependent or it would really help out immensely to get that rental income.

When I bought my current house, I was single. It was awkward when I got a knock on the door one day. It was one of the admins who worked for the builder I bought from. He had sub'd in for my primary sales lady so we had some interactions and he knew I was buying my house by myself. He asked if I would consider taking him in as a roommate. I said I would think about it but never called him back. Don't want to deal with the headaches.

I have a vacation property near the beach I bought 3 years a go. Everyone asks if I rent it out during the summer vacation season. I said heck no. House is brand new, and in many ways has nicer finishes than my primary residence. Again, I don't need the headaches of dealing with issues from renters.

I know everyone has good and bad stories. But I know of one personally where it ended up all bad. It was with an ex-girlfriend. She decided to buy this house as a rental property. She got a property management company involved. First set of renters were great. A couple of college girls who paid their rent on time and kept up the place...ie didn't destroy anything. Then they moved out. I don't remember if there was a renter in between the one that rented her house last. But the last guy was the one that sent my ex into a financial tail spin. She was getting behind on her mortgage payments already. Well, this guy that checked out with background checks and credit history caused more financial issues than he initially solved. On paper he looked good. Was an veteran and was receiving VA benefits which were to also pay for the rent. After about two months, he stopped paying. The management company kept saying he was waiting on some benefit payout which never came. After some more months, my ex was able to evict him after a court hearing. When the property management company went into the house to assess any damages, what they saw was just mind numbing. The guy decided to do a crappy paint job on various rooms in the house. He didn't pay for any heating oil so the radiator system was not running during the winter and the pipes froze. Ended up cracking the radiators in the house which required $6000 to repair. He also used space heaters to keep certain rooms warm. Because of the older wiring of the house, the load on the circuits caused electrical problems at the main panel. In the end, my ex was so far in the hole financially she had to let the house go into foreclosure.

There was also another incident where one of my good friends was renting out his townhouse in another state he moved away from. He wanted to rent the place to allow the housing market to recover a little before selling. He did all the checks everyone said to do here. The tenants ended up not paying rent. He had to go to court to evict. The tenants ended up trashing his house which BTW was new construction and only a couple of years old when he rented it out. I've been to his place before and it was really really nice. Don't remember how much it cost my friend to fix up all the damage but I seem to recall it being in the thousands.

EXACTLY why I would never venture into the renting world. Like I said, I can make my money without renting. I understand some people appreciate the income boost from renting part of the property but this comes with risks as outlined above. I have enough stress from my job as is. Whatever extra income I could generate from renting I can generate from working just as well. Those are my 0.02 cents

M

[zx10guy]

Originally Posted by dr.mba

EXACTLY why I would never venture into the renting world. Like I said, I can make my money without renting. I understand some people appreciate the income boost from renting part of the property but this comes with risks as outlined above. I have enough stress from my job as is. Whatever extra income I could generate from renting I can generate from working just as well. Those are my 0.02 cents

M

My take on renting is this. If you're going to get into renting, really get into renting as a business and not something you're doing as a side thing. Hopefully if you approach renting as a business, you would do certain things to protect yourself personally from any liabilities which may result from this business.

I may get into renting out property myself in the future. But it would be if I have enough financial stability to have cash in the bank to deal with any potential fiascos from renters and with a property which I don't have any emotional attachment to. But for certain that property would be under an LLC to shelter myself from any liabilities.

[dr.mba]

Originally Posted by zx10guy

My take on renting is this. If you're going to get into renting, really get into renting as a business and not something you're doing as a side thing. Hopefully if you approach renting as a business, you would do certain things to protect yourself personally from any liabilities which may result from this business.

I may get into renting out property myself in the future. But it would be if I have enough financial stability to have cash in the bank to deal with any potential fiascos from renters and with a property which I don't have any emotional attachment to. But for certain that property would be under an LLC to shelter myself from any liabilities.

Agree 100% with the above. My dad has rental properties all over and his workers do all the leg work for him. If/when I have enough money to run a gig like that, I would certainly consider doing it. I was merely answering for the OPs original question on whether I would rent space in my "personal" living space. That I think is a big fail.

M

[NEFARIOUS]

You'd have to be VERY careful... Make sure you do a background check and employer verification of whoever is moving in.

Now, the guy had resources; his dad was the VP of a refrigeration company and his mom was well-to-do as well, and he was attending college. However, I later find out that he hung out with the wrong crowd and was briefly in prison for drug use, which gave him PTSD and he drank. A LOT. My apartment was in disarray at least once a week, and he even got arrested for public drunkeness while I was at work one day... Took A LOT of work just to get him out of here.

[sea6speed]

I've known a lot of young guys that basically paid their mortgage off renting rooms to friends. In my area now a bedroom rents for about a grand a month, so it can be a worthwhile source of income. Lots of new homes being built with self contained mother in law units. Some starter homes just went in nearby for $700k-ish and the ground floor can be completely separated from the others by locking a door. Having some rental income to offset a mortgage of that size is definitely a bonus.