Ok thinking about buying a house for a investment and kicking around the idea of renting.
What I need to know is what I can expect on the utilities side and what is to be expected to be paid in the rent.
I will buy the house outright with all the previous debt paid. The taxes will be around $ 1,800(on the high side of the neighborhood around$ 1,200 currently).
So there is a negative 2k
The average utilities for a 5 person household in the area is around $ 600 a month year round so there is a negative $ 7,200
Then there is the insurance once again on the high end at 2k(est)
so I have about 12k in expenses per year overall
Note that the utilities make up most of that.
And I really don’t see Charging more then $ 500 a month the make sure the place is full.
So do I put a cap on the Utilities or something. That is figuring 200 for electric 150 for water and 250 for gas(that’s the high end that’s how I figure these things)
The other option is simply a basic insurance(as the house will be empty) and hire a yard crew(who will be able to keep a eye on the place 4a yearly bonus). With the taxes and I am looking at around 4k per year.
So is renting a good option(with a cap of some type) or am I better off just closing up the house and keeping it as a investment.
Me myself moved out of my parents place bought a house became a OTR truck driver(Jobs dried up in MI) sold the house.
As a OTR driver I only get home about 2 days every 2 months. I stay in a hotel for those 2 days while visiting family(I have no wife/kids). And have been saving money that I would be paying towards the house, car payment, and insurance(roughly $ 1,800 a month) towards buying a house outright. So I have never actually seen the renters side and don’t know what they expect when renting.
The house is in Michigan close to a major college.