[redrocket]

Thinking about buying a modest home in the Villages as a rental/future winter home. I am 49 years old so I wouldn't personally use the home for several years. Please direct me to the appropriate section to ask questions about this strategy. Thanks!

[GatorFan]

Call The Villages sales office

[asianthree]

sent you a pm

[redrocket]

Thanks to the Mod for moving this to an appropriate section. Now I feel comfortable asking my questions. As I mentioned, I am thinking about buying a home in TV in the 100k range. I have seen several manufactured homes, even furnished in that range. I would like to use it as a rental for about 5-6 years then a winter home in 10- 15 years. I would probably use the home for a month in the in-between years. The big question is, is it reasonable to expect to rent the home and come out in the black after paying the mortgage, cleaning, maintenance, management, HOA and other fees/taxes? All opinions are welcomed, but I would love to hear from those who have done what I am describing. My fantasy is that I will end up with a paid-for home on some one elses dime. Thanks again.

[ijusluvit]

I think the central question is what the home and it's surroundings will be like in 10-15 years when you intend to be there to enjoy it. I don't doubt The Villages will still look well kept. But 5-6 years of full-time renting will demand consistent, thorough maintenance on your part. A modest home without lots of the 'extras' will not draw a premium rental price, so it will be questionable if you can pay all of your maintenance expenses with rental income. Any mortgage and taxes will almost certainly come out-of-pocket. So, in the end, what you might be left with is a place which you have to buy on your dime, saving only the inflationary difference between buying now or later.

Everything changes, if like us, we want to be in TV part time now or sooner than you stated above. It's made great sense for us to buy and rent for about 3/4 of the year. In that scenario we have access to our place when we want it, and a good income from rents to add extras which keep our home in great shape and very desirable to guests.

Good luck with your decisions. There are so many variables to this that solid answers will not come easily, but you are two huge steps ahead: !) You are carefully looking at the future, and 2) you've already picked the best retirement venue in the country!

[Medtrans]

Funny your user name is red rocket..my mom's nickname is red rocket be cause of the red neon she drove while living in the Tampa area!

[ijusluvit]

Originally Posted by GatorFan

Call The Villages sales office

I'd be curious to know why you have made this suggestion. It is rather 'conventional wisdom' that the Villages sales offices clearly promote and emphasize their new properties to prospective buyers. I'd think someone like the OP would prefer a more balanced view, from someone like an experienced MLS sales person for example.

[dalecrenshaw]

I can tell you from experience it is not possible to make a profit on renting out a manufactured home. I rent ours out for January, February, March and possibly another month or two, at a lower price, if I'm lucky. Most people want to rent Jan/Feb/March and pay more for those months. The income is not enough to cover expenses (mortgage, taxes, homeowner's dues, electric, cable, phone, water, internet, Gardening service, garbage, fix-up and maintence expense, insurance, property management and/or house watch service, etc.) In my opinion, the only way to come close to breaking even, is to rent it out on a yearly basis...but then you will not have any use of the house. If you are out of area, you would probably have to have a property manager, which charges a commission of 15% or more. There is also a 11% tax due to Lake County (4%) and the State (7%) on any rental income if the house is rented for leass than 6 months. If rented more than 6 months, there is no tax due. Also, in order to make your house a vacation rental, you need to get a business license, and you have to follow certain regulations and have certain things done to the house like installing emergency lighting, smoke alarms, etc. etc. etc. So, it is not very easy or profitable venture. I loose quite a bit of money each year in order to keep the house.

[peteg]

The Sales Office can give you a monthly cost figure for a home in The Villages, Bear in mind if you are renting there will be many more costs like empty nest, gardening and looking after guests - maintenance would have to be bought in as you are not here to do it yourself

We own a 2 bed ranch which we let out Jan/April and stay ourselves 4 months outside of these times. The rental income barely covers costs and would not contribute to a mortgage or give a return on your 100+K capital

However we love our time in The Villages which we consider a great (if not profitable) investment

[ilovetv]

"As I mentioned, I am thinking about buying a home in TV in the 100k range. I have seen several manufactured homes, even furnished in that range. I would like to use it as a rental for about 5-6 years then a winter home in 10- 15 years. I would probably use the home for a month in the in-between years..."

I'd look at where and what type of home you want to live in 10-15 years from now.

Is it the place where you would most like to live, in TV?

Is it a type of home that keeps its market value and is sturdy enough to withstand tenants who don't care about it as much as you do?

I'd look at trying to break even or less, but not to make a profit by renting. And I'd call a reputable property manager people highly recommend here on TOTV.

[ilovetv]

Originally Posted by ijusluvit

I'd be curious to know why you have made this suggestion. It is rather 'conventional wisdom' that the Villages sales offices clearly promote and emphasize their new properties to prospective buyers. I'd think someone like the OP would prefer a more balanced view, from someone like an experienced MLS sales person for example.

In the very near future, all Villages Sales reps will be selling resales--not new ones--because the end of new construction has been planned out for years. They are already re-tooled toward selling resales, and they're doing just that.

One reason new homes are "promoted and emphasized" with new buyers is because they are empty, and one can see the various floor plans available throughout the new and used homes in TV.

Sellers of their resale homes would not be happy if 300 people staying on Lifestyle Preview were given showings of their listings, only to find out the lookers coming for a showing are just getting their first overview of TV and are not yet ready to buy in the first 3-5 days here. Sellers think showings are people who want to buy, not just traipse thru to get an overview.

Ask to see resales and they'll show them.