Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#16
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There is liquidity and liability risk in rentals. The bulk of your money will be made in winter months. Investigate the amount of rentals you will compete with. A neighborhood rental had good activity at first and and has not been rented in 4 months.
I ran numbers a few years ago and the benefits were marginal for me. Localities can ban short term rentals at any time. See NYC. Lastly, people were conditioned to believe they will appreciate. I highly doubt that is the case with volume of homes being built. |
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#17
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ps, I know you did not want suggestions regarding rolling it over, however there are a lot of people who read these forums who have really good thoughts and ideas. It might be worth posting the specifics of your cash out options to get different perspectives. Last edited by Robbb; 12-16-2023 at 07:54 AM. Reason: addes info |
#18
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We have had 3 investment properties at the same time.
PV as a vaca home for us and seasonal rental November-April. Paid for all expenses plus mortgage, and money to set aside for down on next house. Big money was selling for more than double original cost. Cottage long term same wonderful gentleman just short of 10 years when he passed on. Rent paid for mortgage lawn amenities (no furniture or utility cost to us) and extra money for down payment on next home, sold at more than double original build. Designer preowned rented October-March for 2 years, until one moved down as snowflakes/bird. Rental paid all bills, taxes, mortgage. Sold making substantial profit. In the end each house paid for the next, and all in all paid for our 4th build plus the pool. Speak to your CPA, about benefits to buy investment properties. Ours always gave us good advice when to buy, pay down mortgages, and sell.
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Do not worry about things you can not change |
#19
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#20
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with thousands of homes being built in TV , I doubt homes will appreciate as fast as other locations in the the US, like the northeast or west coast. If you’re a handyman, you can make it work as a good friend of mine is a retired electrician and he owns 4 rentals in the villages, but it’s almost a full time job.
I own 2 homes and a condo, one in TV, and the others in RI, that we live in and don’t rent out. If i had 2 do it over again, i would just own 1 home, and invest in high tech or semi conductor industries which have averaged 24% a year, this year up 72%. But you have to have nerves of steal to withstand the downdrafts |
#21
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We kept our first house we owned in TV for a rental. It wasn't worth the work. I did all except mowing and still only made a small profit after expenses. Also consider wear and tear on the house. When we sold, after two years, I had a lot of work to do to get the house back in good shape again doing all myself. If I had to pay a painter, carpet cleaner, etc. It would have cut into capital gains. PLUS... No guarantee on the housing market. If we didn't have a tenant under lease we could have sold for about 10% more but by the time they vacated and repairs completed, interest rates started increasing and the market had already started declining. I definitely agree with prior posts expressing the stress of being a landlord. Good luck in whatever you decide.
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#22
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I’ve written ten books and my first book was on the hazards of investing in real estate rental properties. For a time, I worked indefatigably on making money through real estate investments. I bought old properties, restored them and then rented them out. It was awful. And I lost money. I’d rather go back to working as a waitress at a bar (another ghastly job) than trying to make money as a landlord. |
#23
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And those investments are?
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#24
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What do you do when the management company calls and tells you the air conditioner quit working. Usually it's only a $20.00 capacitor but it was a Sunday and they charged $300.00 to fix it. And then your home owners insurance doubles because the roof is 15 years old, so you have to have the roof replaced. Then no hot water. Who wants the hassle?
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#25
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Try making money somewhere else |
#26
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Both parties pay closing costs. The seller pays the agent commission (unless it’s a FSBO) and the buyer pays settlement costs whether it’s a cash transaction or a loan is involved- real estate taxes, 1 year homeowners, stamps, title fees, etc etc
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#27
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Taking the cash up front is taxable
Consider Mutual Fund money funds such as Schwab SWVXX paying over 5% |
#28
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It is a good investment if you don't mind dealing with the rental world. It is not easy nor good for the faint at heart.
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#29
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Don't forget you are only an investor the day you buy and the day you sell. You are a LANDLORD the rest of the time, which (at times) can be a real pain. You may be better off with the $$$ in a diversified portfolio.
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#30
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If you take the cash from the pension plan and do not roll over the money, you will be subject to a significant tax bill. With regard to the fact that you would receive 100% of the pension benefit each month and 50% of the pension benefit would be paid to your spouse upon your death, you should check to see if there are other pension benefit options. The benefit you describe is a 50% Joint & Survivor option. Many plans offer other options including 75% Joint and Survivor option and 100% Joint and Survivor option.
What does it mean? If your monthly pension benefit is $2,000 given the 50% Joint and Survivor option as you describe, then the 75% Joint and Survivor pension option would provide you with a monthly pension benefit of less than $2,000 but upon your death, your spouse would receive 75% of the pension benefit. If the pension plan offers a 100% Joint and Survivor pension option, your monthly pension benefit would be less than $2,000 per month, however your spouse would continue to receive the same pension benefit until your death. For example, I am only providing numbers without any reference to your pension plan -- it is only meant to be an explanation of the options. The 50% Joint and Survivor option: you receive $2,000 per month and spouse receives $1,000 upon your death. The 75% Joint and Survivor option: you receive $1,900 per month and your spouse receives 75% of the $1,900 or $1,425 per month upon your death. The 100% Joint and Survivor option: you receive $1,750 per month and your spouse continues to receive $1,750 per month upon your death. Also, does the pension plan offer a cost-of-living adjustment each year? While many pension plan no longer offer a cost-of-living adjustment, you should ask the question. For those plans that do offer a cost-of-living adjustment, the percentage may be low and you may think it is insignificant, however after five or ten years it makes a difference in your monthly pension benefit. I would check with a person with a financial or tax background before making a decision. Also, does the company offer any seminars in which they bring in people such as the administrator of the 401(k) plan? If yes, you should attend. A pension check deposited in your bank account is much easier than being a landlord. Please check all of your options before making a decision. You need to take your time to understand the financial impact of your decisions. |
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