didn't notice after taxes (qualifying ratios are based on gross so I went off on a tangent)
after taxes would be around 1%
I own and rent, oddly enough.
I rent the house I live in, and it costs me 29% of my take home pay from my primary source of income. It's a very nice place though.
I still own my house I lived in when I was married (got it in the divorce), and rent it out. Now that home I actually make good money on and will do well when I sell it, which is slated for this December. I charge about 150% of the monthly mortgage payment for rent (that payment includes taxes and insurance escrowed). And it's never been vacant for one second.
I rent the house I live in, and it costs me 29% of my take home pay from my primary source of income. It's a very nice place though.
I still own my house I lived in when I was married (got it in the divorce), and rent it out. Now that home I actually make good money on and will do well when I sell it, which is slated for this December. I charge about 150% of the monthly mortgage payment for rent (that payment includes taxes and insurance escrowed). And it's never been vacant for one second.
No and no.
But I imagine my situation is fairly unique.
a) I rent to an old friend
b) the house is in my hometown
c) I am close friends with 4 other families on that block
d) I am in town at least once a month for work anyway
e) one of my best friends owns a chain of bars (which my tenant works at), so I get handiwork done very cheaply
f) I put a shit ton of money in the house right before the divorce, so most things are new (roof, furnace, etc), so there are very few repairs to speak of
Did I mention my tenant is a good friend of mine? Cause that makes it very easy on me. For now. Hope it stays that way. Ya never know, my last best friend knocked up my wife, so...
Yea that's a very unique situation.
If you are getting 150% over house payment I would milk that for all its worth.
I would rent it out till at least your friend moves.
Every month the principal goes down and the house value goes up .
Thats a good combination
