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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 91  
Subject: Re: how to evaluate Date: 4/12/2012 11:47 AM
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What other questions do I need to be asking as I consider this property?

Make sure it is a legal rental. Just because he is renting it out doesn't make it so. Many towns have restrictions against short term rentals and you don't want to find that out after you hold the mortgage. HOA restrictions can also be an issue.

Since he is using an agent to rent it out, see if that agent has other rentals in the area and use a similar home rental history to get some idea of what you might expect. If you like, I can email you a profit projection spreadsheet I use to evaluate what the economics of a property looks like. It helps me remember to factor in much of the details that don't always apply to regular rentals, like cable tv and maid, as well as factor in tax benefits. Also factor in their management fee even if you intend to manage it yourself, to make sure that it is at least break even if you have to have someone manage it. I call that my "hit by a bus" factor. No way DH would manage our rental if I were taken out.

And speaking of tax benefits, get this book and read it: http://www.nolo.com/products/every-landlords-tax-deduction-g...

I got mine at amazon for about $25. Make sure you get the current edition. It has a chapter specifically for vacation rentals and points out the differences for VRs from long term residential rentals where those differences exist.

Property sounds awesome, but you already know I'm a sucker for river front!

IP
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