Hey, ATS Landlords! What would you say to this?

a reply to: NightSkyeB4Dawn is your area small enough there's a concept of being a local? Locals have to pay rent on time for their reputation.
And locals have to keep a clean house because you never know if the mother in law will come over uninvited.

a reply to: mysterioustranger thank you. I feel for you...that must have been rough

a reply to: Look2theSacredHeart
There aren't as many advantageous to owning anymore as there used to be.

With the insane taxes, insurance, the code guerillas, and the ridiculous cost of repairs, you are lucky to break even.

a reply to: Look2theSacredHeart
Unfortunately no. Good sized town with a lot of tourist and transients.

In a really nice area, not too close to the city, and not too far away. About 30 minutes from the beach, without traffic.

a reply to: Destinyone

hehehe, when is the last time you actually did an addition? What should be done, and what happens after you do it anyways usually works out just fine. Especially when one is renting out the addition. I suspect OP is having a child, or hosting a relative in need though.

a reply to: Look2theSacredHeart

It was a long time ago and lesson learned...that an agreement in writing to continuing the previous arrangement no matter who owns it...is out the window when a new owner comes along. Nothing really binds the participants any longer...

One way to kind of secure it...is if due to the investment of the renter, the landlord agrees to put their name on the deed or the quit-claim paperwork.

I am currently thinking of putting some major $$ into our family 3 bedroom log cabin overlooking the AuSable River up in the Huron National Forest. The family doesnt really go up, except the wife, dog and me. Its in Amish country...figuring it would be part ours once I do. But, thats a family thing...not quite the same....

Thanks for replying....MS

a reply to: AmericanRealist Bingo. Having second child, actually. Even if the added bedroom doesn't work out, we'll stick it out here as long as we can. We love it here.

a reply to: NightSkyeB4Dawn Hmmm, maybe only advertise by word of mouth? Then your renter has some tenuous social connection to you...a mutual friend...and feels the need to be responsible.

Sounds like a cool area.

I guessing an improvement to the landlords property or addition will raise their taxes ....are they ready for that? Does your rent go up then ? I think you should save or invest your money for a place of your own....instead of putting towards someone else's investment .

originally posted by: Meldionne1
I guessing an improvement to the landlords property or addition will raise their taxes ....are they ready for that? Does your rent go up then ? I think you should save or invest your money for a place of your own....instead of putting towards someone else's investment .

I agree with the poster here.

Have you done the job cost on the addition?
Dirt work, permits, Labor, Foundation or basement, electrical, framing, drywall, insulation, lights or fans, plumbing, windows, siding, casing/base trim, sheething, housewrap, flashing, shingles, vents, floor joists, adhesive, screws.......................700 trips to lowes

If you can collect enough to remod to code I'd offer a contract. If the house is in a good location and would be liked by others, I'd offer a contract.

This contract would be market value of recently sold comps, minus the repairs or updates needed to match those comps.

Do not put money into someones rental property.

If you want to buy a house, but can't get a mortgage, contract purchases are a great way to get into your first home
and make a killing if you do it right and get it cheap enough.

Always have the option to reassign checked on your offer.
Buy house for 100k on contract worth 150k remodeled. You pay 10k cash down, make pmnts on the 90, but the title is signed over to you. You then put in 5-10k worth of improvements into prop and list it when done. The seller gets balance due and you get the remaining profit. Untaxable if it's a profit on your primary residence and you lived there for a certain ammount of time. I believe it is 2 years minimum, but confirm.

So, I'd say no improvements made until under contract. I'd try the contract angle before mentioning improving the prop, if you REALLY like it.

a reply to: Look2theSacredHeart

Sounds unwise to me. County laws and zonings can be changed with a change in personnel at whatever level makes these decisions.

How many times has there been examples and lessons on this forum, in how money and power rules and they usually get what they want.

Sounds to me like somebody has mistakenly associated renting with ownership.

AAHH. Jesus really loves suckers. WHAT are you thinking about? Firstly, your situation, a one bedroom place, you add a bedroom, it now becomes a two bedroom place therefore worth more on the rental market. What makes you think the present landlords wont put up the rent after you've finished the extension (which they are fully entitled to do). Your expence to build more rent for your privelidge.
Landlords rent for the money not for friendship. So they can't sell it to you. If they like you that much why don't they GIVE it to you with monetary agreements afterwards, to circumvent the local laws. Something like, if the house was worth $10000, they give you the house as long as you buy their beat up car for £10000.
They are in it for the money and are only nice to you because you pay up regularly, you extend the builidng at your cost and they will absolutely really, really love you as you've just upped their investment at no cost to them.

a reply to: Meldionne1
Excellent point. I would say our rent should increase to cover additional tax and insurance costs.
Save or invest for our own-that's the plan, but where do we live in the meantime? Pay $425 per month as it is, while crappy 2 bedroom apartments cost $850 per month, inflated by all the student loans in our college town area. Our landlords are hippies or philanthropic... They never raised the rent in 5 years...we raised it ourselves two years ago from $375. Save and invest... In a more expensive house or apartment?

a reply to: Mandroid7 My husband runs a construction company with his dad, and he's mentioned all of that. Plus he would want to hire an engineer they always use. They do high end custom remodels, so his bid tends to be high.

Contract purchase is exactly what we want to do. That's how the landlords bought the farm from the people before. But the little house can't go for sale separate from the rest of the farm. They're newly retired and nowhere near ready to sell the whole property.

We could do a mortgage on another place, but amortization tables scared us off. You pay about double the price of the house on a thirty year note. Why not be patient, buy with cash or a contract, and stash the cash that would have gone to mortgage interest? A $25k addition plus rent for 20 years is way less than $130k in mortgage interest.

a reply to: Azureblue this is great advice. The Landlord might approve like bigfurrytexan did, but the county could screw us over.

There's no confusing renting with ownership. :-) We are, however, trying to figure out unconventional solutions.

a reply to: crayzeed Mortgage companies and slumlords love suckers, too.

Someone is gonna get our cash, period. Do we pick rental agencies, mortgage companies., or the landlords who we've had an excellent business relationship with?

What are the local rules around using a 'bolt on' rather than permanent extension?

Could you attach a Tiny House thetinylife.com...



Or a converted shipping container maybe www.buzzfeed.com... ?

a reply to: Look2theSacredHeart

but amortization tables scared us off. You pay about double the price of the house on a thirty year note.

When I bought my first home I too was scared off by the amortization tables and the math over the 30 year mortgage. My lawyer told me, don't think about it because if you do, you will never own a home, because the whole process is criminal.

I found out he was right, but what were my options. Continue to pay rent and see no return on my money, or buy a house and at least see some return when I sell it. I started with a small 2 bedroom. The 2 bedroom became a rental to help with my the mortgage on my 4 bedroom. The 4 bedroom became a rental that helps with the mortgage of my retirement home.

That was all a good plan way back when. The math just doesn't work anymore, and I am almost ready to cash out of this money pit trap.

originally posted by: bigfatfurrytexan
a reply to: schuyler

we have, on an occasion, carried a note for a renter who wanted to buy a property he had lived in for 10 years, and had made some capital improvements. We sold the house over a 10 year period (he's half way done), interest free, at 70% of market value. If he defaulted (ie., left town and didn't pay for a few months) then he loses his investment (essentially, rent to own).

But we trust each other, and I don't do people wrong. So it works well for him and his family. He's also a licensed electrician, so does quite a bit of sidework for us in exchange for a monthly payment.

Interest free? That, besides everything else you're taking above and beyond, is pretty impressive civilised human-ness for an ape, or is it the other way around? Either way, my world feels a little brighter for reading, and for knowing there's folks like you out there in it.

Cheers

originally posted by: Look2theSacredHeart

We could do a mortgage on another place, but amortization tables scared us off. You pay about double the price of the house on a thirty year note. Why not be patient, buy with cash or a contract, and stash the cash that would have gone to mortgage interest? A $25k addition plus rent for 20 years is way less than $130k in mortgage interest.

Just so you know, splitting the payments up into fortnightly payments will cut the total just about in half. Its all to do with calculation of interest.

Make sure its OK with the bank first and that are happy for the effect to occur.