Budget of p72,000 pm. Enough?

[bows00]

On 6/2/2017 at 2:24 PM, Dave Hounddriver said:

There's a red flag.  Many of us have found that renting from halfway across the world has more than its fair share of problems and if you MUST pay the mortgage from the rent then you have no time buffer to take care of problems with tenants that will come up. It all sounds good until your property management company contacts  you in Cebu and says:  Your tenants moved out and left more than the normal amount of damage.  You will have to send some money to deal with it and it will be 6 months or so before it is ready to be rented again. (Or something similar)

Totally agree.  Long distance land lording is never a good idea.  You never know if the tenant is overhauling his Harley in your kitchen.  And double trouble if you still have a mortgage on the property.  I have a paid off condo in Hawaii and I am reluctant to rent it out when I make my move to the Philippines.  After my trial period of two years, if I end up loving it there, that condo is up for sale.  

[sonjack2847]

16 minutes ago, bows00 said:

Totally agree.  Long distance land lording is never a good idea.  You never know if the tenant is overhauling his Harley in your kitchen.  And double trouble if you still have a mortgage on the property.  I have a paid off condo in Hawaii and I am reluctant to rent it out when I make my move to the Philippines.  After my trial period of two years, if I end up loving it there, that condo is up for sale.  

I rented my place for 6 years.The first tenant moved in and then stopped paying rent,her reason  was she had no work so she lied on the application.At the first opportunity I got rid of her.She left me in debt as I still had a mortgage. Because of the management companies failures I managed to get some back from them but it never compensated me fully for what I had lost money wise.

The second tenant was a dream come true,she would do small repairs herself and would arrange for quotes for bigger repairs and always paid on time.She left when she decided to get married and he new husband already had a house.She was missed by me.

Tenant 3.sublet part of the house had no idea how to treat anything broke many fittings and left the place and the garden like a pigsty.I decided enough was enough and sold.I am still fighting to get some money from them.Even though they paid a deposit it seems they can dispute and mess you about.

You can get lucky and have a good tenant but the odds are stacked against you.

[bows00]

1 minute ago, sonjack2847 said:

I rented my place for 6 years.The first tenant moved in and then stopped paying rent,her reason  was she had no work so she lied on the application.At the first opportunity I got rid of her.She left me in debt as I still had a mortgage. Because of the management companies failures I managed to get some back from them but it never compensated me fully for what I had lost money wise.

The second tenant was a dream come true,she would do small repairs herself and would arrange for quotes for bigger repairs and always paid on time.She left when she decided to get married and he new husband already had a house.She was missed by me.

Tenant 3.sublet part of the house had no idea how to treat anything broke many fittings and left the place and the garden like a pigsty.I decided enough was enough and sold.I am still fighting to get some money from them.Even though they paid a deposit it seems they can dispute and mess you about.

You can get lucky and have a good tenant but the odds are stacked against you.

Overall, I believe, based on my experience, that your tenants will be responsible with timely payments about 90% of the time.  But it's that 10% chance, or even that 1% chance that you could get a nightmare tenant.  For example, I have a condo right next door to me that was used as a meth lab, and once busted, it was all over the evening news.  It took the owners over 1 year to evacuate the criminals and eventually lead to an unfortunate foreclosure of the property.  

Bottom line, when real estate rentals work, it's wonderful, when DONE RIGHT.  But it's not for everyone.  I prefer to maintain a diversified portfolio of investments to compliment my travels during retirement.

[earthdome]

I had been considering long term renting of my place in the US when we decide to spend a majority of the year in the Philippines. Now I think I will turn it into an AirBNB while we are gone and have someone manage it. That way we still have a place to stay when we return every year, car, etc. But the routine annual costs are covered by the AirBNB rentals. We can store our car and personal items in the garage while we are away and the place is being used for AirBNB. We live at a good location for this where there are weekends and times of the year when hotels, etc. are in high demand.

[virginprune]

1 hour ago, sonjack2847 said:

I rented my place for 6 years.The first tenant moved in and then stopped paying rent,her reason  was she had no work so she lied on the application.At the first opportunity I got rid of her.She left me in debt as I still had a mortgage. Because of the management companies failures I managed to get some back from them but it never compensated me fully for what I had lost money wise.

The second tenant was a dream come true,she would do small repairs herself and would arrange for quotes for bigger repairs and always paid on time.She left when she decided to get married and he new husband already had a house.She was missed by me.

Tenant 3.sublet part of the house had no idea how to treat anything broke many fittings and left the place and the garden like a pigsty.I decided enough was enough and sold.I am still fighting to get some money from them.Even though they paid a deposit it seems they can dispute and mess you about.

You can get lucky and have a good tenant but the odds are stacked against you.

It's because of those reasons that I didn't have a second thought about selling, headache over. My friends in UK tried to convince me to rent but I was having none of it.

[stevewool]

3 hours ago, virginprune said:

It's because of those reasons that I didn't have a second thought about selling, headache over. My friends in UK tried to convince me to rent but I was having none of it.

Its a hard one , weather to sell or rent the house back home, its like cutting all ties but its a big cash lump too , to help you fund your next adventure.

We are renting /selling our house when we make the move and that will give us that time to know if its right or wrong, the renter and the buyer are the same person so there is no worry there.

[Jack Peterson]

3 minutes ago, stevewool said:

We are renting /selling our house when we make the move and that will give us that time to know if its right or wrong, the renter and the buyer are the same person so there is no worry there.

Steve, can we take it that is family? If So then yes a good move I think. On that score you will assured of minimal damage during the Rental period 

[stevewool]

22 minutes ago, Jack Peterson said:

Steve, can we take it that is family? If So then yes a good move I think. On that score you will assured of minimal damage during the Rental period 

Its my daughter, she lives with me already and she is taking over the house lock stock and barrel, so if she breaks it she will replace it, plus after awhile it will all go to her so its a win win situation for both of us really.

[OnMyWay]

One option for some situations is to do a lease with option to buy contract.  You can get people who take good care of your house.  I currently have my house in Florida on a lease / option contract.  He takes good care of the house and is responsible for all repairs up to $250.  I get about $500 per month extra rent which he will get back if he buys the house at our agreed price next year.  If he can't come up with the down payment and satisfy the bank requirements for a loan.  I keep the extra $500 and the contract ends.

Statistics in the U.S. show that 90% of tenants with a lease / option never buy the house.

[Dave Hounddriver]

1 hour ago, stevewool said:

Its my daughter, she lives with me already and she is taking over the house lock stock and barrel

Not sure if your situation is exactly the same as mine but I had a daughter living with me in my house in Canada.  She took over the house lock stock and barrel and we agreed she would make payments.  It worked for about 6 months and then her mother (my ex) moved in to "help" her.  Six months later my daughter moved out to be with her boyfriend saying "its OK dad, Mom will be making the payments for me.  Yeah right.  The house is gone now.  Ever try to get a house back from your ex?