Question about buying a house and rent it.

[notlongnow]

I am getting very close to slowing down my business and semi-retiring. we will have a large capital gain when I sell my business and could invest some of it in another home.

My parents live in TV and love it. We have been there a couple times and love it but wife is still not totally on board for moving there full time in the future. Who knows what the future bring though!

My parents have suggested we buy a small CYV or something like that for part-time or snowbird type living in TV. I am up for this but not sure about renting it when we are not there. We have a pet and would have no problem have someone with a pet rent it with a pet deposit.

My question is to those who do this or know about how easy it would be to rent something like this during the time we are not there.

My parents say they would love to look after it and take care of renting it for us. It all sound great but I don't want my extreme desire to live in TV to cloud my thinking when it come to this.
We would buy something bigger if we lived there for longer periods but this would be like a starter home in TV.
My stepmother is a CPA and my financial adviser, a very good one, and I trust her and she feels we could break even with renting and it would be worth more in the future when we up grade.

What do you think?

EB

[ijusluvit]

I am getting very close to slowing down my business and semi-retiring. we will have a large capital gain when I sell my business and could invest some of it in another home.

My parents live in TV and love it. We have been there a couple times and love it but wife is still not totally on board for moving there full time in the future. Who knows what the future bring though!

My parents have suggested we buy a small CYV or something like that for part-time or snowbird type living in TV. I am up for this but not sure about renting it when we are not there. We have a pet and would have no problem have someone with a pet rent it with a pet deposit.

My question is to those who do this or know about how easy it would be to rent something like this during the time we are not there.

My parents say they would love to look after it and take care of renting it for us. It all sound great but I don't want my extreme desire to live in TV to cloud my thinking when it come to this.
We would buy something bigger if we lived there for longer periods but this would be like a starter home in TV.
My stepmother is a CPA and my financial adviser, a very good one, and I trust her and she feels we could break even with renting and it would be worth more in the future when we up grade.

What do you think?

EB

It works. We've done it successfully for seven years.
You can pick the time you want to be there and rent your place for a fair share of the remaining time you are not. But there are some keys to making it work.
1) If you can make the initial purchase and furnish the place, successful renting will, at most, net enough to pay for operating expenses, not a mortgage, if you have one.
2) I would not rent my home unless it was cared for by an experienced, licensed manager. Thankfully, I have one.
3) How are you going to advertise your rental? There is a lot of competition out there.
4) We can meet expenses and still keep winter months for our own use. Only because we have a pool/spa, big private lot on golf course etc.,etc. Fancy=rentals, but you have to pay to make it fancy first.

There is a lot more. Send me a pm if interested. Good luck! TV is a brilliant choice!!

[asianthree]

If you go to thevillages4rent.com and search what is left for JAN/FEB/MAR you will find very few left in the patio/cyv/cottage/designer to rent so with that said i say investment or not you should be able to rent for at least 2 months a year if not more. We started with a patio and know a 1.5 garage is not going to do it for us so we will be buying another house when we move down for at least 4 to 6 months. At this time our renters help pay for everything except the mortgage and some of the taxes. Just my thought on if i would do it different, yes i would have not gone with the smaller unit.

[Jim 9922]

There is a recent thread in the Investing topic area. The general opinion was that investing to make rental profit is probably not a good thing. Renting to maybe cover some costs while you are away does provide some help on all the fixed costs of owning. However, the real prime rental season is only the period mid January thru March. If you plan to come and go, especially during the high season, I'd say you'd find owing to rent a very, very poor venture.

[notlongnow]

Thanks for the replies.
First of all I would not have a mortgage, it would be cash so that would help.
Second, I am not buying just to rent for profit. It would be to offset general cost, taxes, upkeep etc.
We would come for a couple months at a time and at this point I don't know when that would be.
My underlying plan is to get us there so my wife could get a better feel for life in the villages before buying a larger home.
As far as using a property manager, my parents could do that because they have done that some where they lived before.
What I am looking to do here is buy my way in to TV and not lose money in the process while giving my wife time to try it out before moving there full time.
We have a vacation home in the mountains in New Mexico that we would live in during the hot summer months and in TV during the winter that I have come to not like as much as I did when I was younger.
I am a avid golfer so that is a BIG plus for me and my wife plays also.

ijusluvit, I will PM you tomorrow wit questions. Thank you for offering your time and info.
Thank you all.

[buzzy]

High season is generally from November through April. If you plan to be there for a couple of those months, then you will be hurting your rental potential.

[ilovetv]

High season is generally from November through April. If you plan to be there for a couple of those months, then you will be hurting your rental potential.

I know people who rent their courtyard villas 3 BR + 2 baths, for only Jan., Feb. and March, and that is $3,000/mo. or more, or at least $9,000 total.

Assuming you pay cash with no mortgage, figure about $700/mo. for 12-months of operating expense. Renting out the CYV for those 3 months of Jan-Feb-Mar would cover expenses.

Then you could come and spend October and November (gorgeous weather months here), December, and April-May which have nice weather too. Then go to NM for the summer.

[Wing-nut2]

I'v been renting houses in TV since 2003. Send me a PM.

[notlongnow]

Wing-nut2 and ijustluvit,

This is a stupid question but I can't find how you PM someone.
On other forums you click on someones user name and it gives you an option. Could one of you enlighten me please.

[jimbo2012]

If they have it turned off it will not show.

In fact your option is turned off:ohdear:

[notlongnow]

How do I get it turned on? Have I done something wrong to get it turned off?

[jimbo2012]

Go to the upper left "user CP"
Edit options

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[notlongnow]

Thank You

[jimbo2012]

your welcome, but you still didn't check all the boxes???

[notlongnow]

Wing-nut2,

PM sent.

Ijustluvit, You don't have the the PMs allowed so I can't contact you through a PM.

Thanks again Jimbo. Do I have them all checked now?

[jimbo2012]

you did the email but not the PM,

just check all the boxes on that page:024:

[notlongnow]

I checked all the boxes except the Vcard box. Do I have to check that one also?

Other than that I don't see any other boxes to check. I am in the "edit options" page.

EB

[jimbo2012]

No you don't need that, email the admin and ask them fix it for you.

[notlongnow]

Thanks for your help, I emailed them.

[Wing-nut2]

There are many things to consider. Add up the mortgage, taxes, insurance, utilities, etc. for a year and then take a look at the amount you will to take in.

If you rent a designer, you can expect 3,000 to 3,500 per month for January, February, and March. Less for December and May and there is a very good chance of nothing for the rest of the year.

Other expenses are furniture, dishes, sheets, everything for the kitchen, and maybe a golf cart. That's big $$$. You are outfitting a second house. You will be expected to provide EVERYTHING!!!

I advertised on VRBO® is Vacation Rentals By Owner (http://www.****.com). That was a couple hundred dollars a year. What about keys? I used a door lock with a number code. My house cleaners would change the number for each new renter. That way no keys were needed. Everything was inside when they got there. Cleaning fees will cost you about $125.00 each time a renter departs. You will need some sort of maintenance person to fix those things that just stay working until you get back down there.

You will have to give up your Villages ID. Renters get all of your rights and privileges. It's $50.00 cost to move that membership.

Think about it before you jump in. I'll send you a pm with my phone number.

[Wing-nut2]

Can't sent the pm. You elected not to receive emails. Sorry.

[cquick]

I know people who rent their courtyard villas 3 BR + 2 baths, for only Jan., Feb. and March, and that is $3,000/mo. or more, or at least $9,000 total.

Assuming you pay cash with no mortgage, figure about $700/mo. for 12-months of operating expense. Renting out the CYV for those 3 months of Jan-Feb-Mar would cover expenses.

Then you could come and spend October and November (gorgeous weather months here), December, and April-May which have nice weather too. Then go to NM for the summer.

I thought you could only stay in your own second home for 2 weeks out of the year if you rent it.

[ijusluvit]

You can stay in your rental home up to 28 days per year and still declare some expenses as a tax deductions. If you do not claim deductions,except taxes you can stay as long as you wish.

[ijusluvit]

I thought you could only stay in your own second home for 2 weeks out of the year if you rent it.


You can stay in your rental home up to 28 days per year and still declare some expenses as a tax deductions. If you do not claim deductions,except taxes you can stay as long as you wish.

[ijusluvit]

Notlongnow,

I'm sending you a pm now. You may reply if your system is working, or you may send your own pm. I receive them all the time, as recent as yesterday.

[ijusluvit]

Notlongnow,

I'm sending you a pm now. You may reply if your system is working, or you may send your own pm. I receive them all the time, as recent as yesterday.

pm didn't work by clicking on your name. So I went to your user profile and left a visitor message.

[notlongnow]

God, I hope not. That does not sound right. I would think that it would be more of a tax thing to have to stay in your home for 6 mo. or more to claim it as your perm. res.

EB

[ijusluvit]

God, I hope not. That does not sound right. I would think that it would be more of a tax thing to have to stay in your home for 6 mo. or more to claim it as your perm. res.

EB

Woah! Two different things here. If you declare that your home is a RENTAL property for tax purposes you may not stay in it for a total of more than 28 days per year.

If you declare it a PERMANENT residence, again for tax purposes, you must reside there for more than six months.

[Carla B]

Woah! Two different things here. If you declare that your home is a RENTAL property for tax purposes you may not stay in it for a total of more than 28 days per year.

If you declare it a PERMANENT residence, again for tax purposes, you must reside there for more than six months.

Purpose No. 1 relates to Federal Income Tax. Purpose No. 2 has to do with property tax.

[renrod]

Publication 527 (2011), Residential Rental Property (http://www.irs.gov/publications/p527/index.html)
Even better Publication 527 in pdf format. Print it.
http://www.irs.gov/pub/irs-pdf/p527.pdf

[mrfixit]

... I do hope everyone is remembering to PAY the Sales and tourist taxes on ALL rentals of Florida property which are for a duration of less than SIX Months PLUS one Day.....

...I think property located IN the Villages carries a total of 9% tax on the GROSS rent of these SHORTER term rentals.......

[Bill-n-Brillo]

... ..... ...I think property located IN the Villages carries a total of 9% tax on the GROSS rent of these SHORTER term rentals....... ....... ..... ......

Is it the same tax rate in all 3 counties??

Bill :)

[notlongnow]

This is why I have a great CPA/stepmother!!

[ijusluvit]

Is it the same tax rate in all 3 counties??

Bill :)

The sales taxes on rents vary slightly from county to county, but are all in the 8-9% range. VERY happy my property manager can take care of it electronically. Not only is it illegal to skip paying taxes on rentals but rather easy for counties to monitor. All they have to do is look at the websites which advertise Villages properties for rent and compare those from which they receive taxes. I know of someone who got caught. Expensive and NOT good!