Our rental property continues to physically embody the reasons why people don't make money off of rental properties.
Checklist for the last two months:
No word yet on what the branch/possible tree removal will cost. Crossing my fingers that the tree is okay.
The state requires a certified inspector to determine the presence of mold. (This costs us money but I approve of it. Mold can have a huge health impact and unethical/inexperienced landlords won't do it if it's not required.) If it's verified, the cost to ameliorate will be about $1,500. Adding a thingummy to help vent the roof and keep down mold-friendly damp is another $1,500, give or take. The inspection fee runs about $500, so that's $3,500.
In addition, the roof is aging, though not decrepit. If it's leaking and needs to be replaced, that's another $9,000 estimated.
We can just about squeak out $14,000 from the tiny bit left on the HELOC for this place. But I'm not confident in our ability to meet the monthly payment for the HELOC afterward, especially given that interest rates are rising. The minimum payment actually just covers interest, and since our job losses last summer, we've been paying less and less of the principal. The thought of owing so much I can only afford to pay the interest nauseates me. We're fortunate Spouse is starting the new position soon, but it's not like they hand the salary over at the beginning of the quarter; it's going to take a while to staunch the bleeding.
I know that even with our troubles we're in much better shape than many people, even in this country, but it's so discouraging to feel that you just aren't moving forward. Sigh.
Checklist for the last two months:
- Tenants not renewing
- Downed branches (and possibly damaged tree) from windstorms need removal
- Possible leak in attic
- Probable mold in attic
No word yet on what the branch/possible tree removal will cost. Crossing my fingers that the tree is okay.
The state requires a certified inspector to determine the presence of mold. (This costs us money but I approve of it. Mold can have a huge health impact and unethical/inexperienced landlords won't do it if it's not required.) If it's verified, the cost to ameliorate will be about $1,500. Adding a thingummy to help vent the roof and keep down mold-friendly damp is another $1,500, give or take. The inspection fee runs about $500, so that's $3,500.
In addition, the roof is aging, though not decrepit. If it's leaking and needs to be replaced, that's another $9,000 estimated.
We can just about squeak out $14,000 from the tiny bit left on the HELOC for this place. But I'm not confident in our ability to meet the monthly payment for the HELOC afterward, especially given that interest rates are rising. The minimum payment actually just covers interest, and since our job losses last summer, we've been paying less and less of the principal. The thought of owing so much I can only afford to pay the interest nauseates me. We're fortunate Spouse is starting the new position soon, but it's not like they hand the salary over at the beginning of the quarter; it's going to take a while to staunch the bleeding.
I know that even with our troubles we're in much better shape than many people, even in this country, but it's so discouraging to feel that you just aren't moving forward. Sigh.
Sooooooo you own a house, just not the good kind like ya want.
ReplyDeleteNo, Mr. Dingo, it's not the good kind, like we want.
DeleteHey! Let's see if this comment thing works.
ReplyDeleteUgh! What a pain to have to deal with all of that. When you read about rental property ownership in the media all you see are stories about easy money and paychecks rolling in. They tend to gloss over the realities of taking on this level of responsibility and the work that goes into it. Thanks for sharing this.
I hope this works out for you guys! Hang in there.
Thank you for the good wishes, and for reading!
DeleteI think it's probably easier to make money if you're willing to be a negligent landlord. I really don't want to be that person, though.