Monday, November 26, 2012

Renting Out My Condominium To Lower Monthly Fixed Expenses

Since I bought my condominium at the height of Home Sales, I have a pretty big home loan that I am making painful monthly payments on.

In June 2012, I refinanced to a lower mortgage rate at 4.375%, which helped quite alot on monthly payments. Except, the refinancing costs were rolled back into my loan, which pretty much brought the loan amount nearly back up to the original loan amount. A few thousands short of being back at the original loan amount.

I was not able to get the lowest interest rate or get no cost refinancing loans because my property is severely underwater.

So, I made the decision to rent out my condo and move back into a home that my parents own at the low cost of paying the house utilities only.  My parents are planning to sell this house in a couple of years and have stopped renting the house out to a tenant. I am insanely lucky and grateful to have them as parents and for allowing me to move into this house until they sell the place.

That was back in July 2012, when I began the moving in process. I was not able to get a renter until now (November, 2012). The utilities here at the house are double the utilities over where my Condo is.  So, for the last few months, I was suffering in terms of having little or no money left over after my paycheck since I was still maintaining the Condo.

Finally, I found a family who will pay me $1,400 per month for the condo with $1,400 security deposit!! They have moved in this week.

The total monthly cost of the Condo is still going to be in the RED, unfortunately, at about $500.00. My mortgage payment, HOA dues, homeowner's insurance, and property taxes equal to $1,900. The rental income is $1,400. That is $500.00 still in the red.

About three days into their move, the tenants reported that my garbage disposal unit has stopped working and that there is no hot water in one of the bathrooms. I ordered a new garbage disposal from amazon and shipped it directly to the tenants already.

I'll know what the cost of repairing these issues is come Wednesday night. Here is to hoping that the hot water issue is not a major issue, involving any damage to the drywall!!

No comments:

Post a Comment