Owning a rental Placerville property can be a perfect way of generating extra revenue. But like any project it comes with its fair share of advantages and disadvantages. Until you start investing in the Placerville rental properties, here are a few things to consider.
Pros and Cons of Owning A Rental Property in Placerville
Someone Else Pays Your Mortgage!
Sounds good right? Okay, if you have the right tenants, really it can be! Owning a rent would create a stream of revenue that you can use to pay the mortgage itself. With the right rent, you’ll generate enough revenue to fund all the operating expenses to own it, plus a profit on the side.
Income Tax Deductions
At a Placerville rental property, you can subtract all sorts of things. You will keep detailed records and receipts of all that you wish to write off.
- If you have a debt on it you can deduct the interest
- Costs of travel and miles to lease, fix and inspect your rental property
- You should subtract the repairs and maintenance. This covers everything from a new roof to a light bulb replacement.
- HOA Fees
- You will subtract whatever portion of the services you pay for
Retire in Style
Found a Placerville home you love? But it may not be in the ideal place for your work commute. Perhaps perhaps this isn’t the right size for your family. It is never too early to consider retirement! If you find a Placerville home you absolutely love, buying it and renting it out is a tactic that many use until they are ready to move into! In fact, the home can pay for itself, and you can hang on to your dream home.
Want To Sell Rental Property ?.. Sell Now
Passive Side Income
If you have all your ducks in a row and a low-maintenance rental with nice tenants, it can be an excellent passive side income to own a property.
You Get “No Respect!”
Apart from the normal wear and tear, some tenants will take care of the home little to nothing. While you are responsible for the maintenance of a living home, you can’t control what they do. You could have to deal with a hole in the defective plumbing windows that were damaged in the wall that you were not made aware of.
You Might Get Sued
Oh, it’s just happening. People could take you to small claims about a deposit that you keep, or a property injury sustained. Their claims may be unfounded and without substance, but dealing with them can still take time and energy.
The Placerville home needs proper maintenance. Even if they are in charge of mowing or holding the pool in the deal, it is essentially your investment. When making an investment, you should consider the maintenance and the annual costs of maintaining the house.
Being a Placerville property owner can be difficult, plain and simple. If you get a tenant with high maintenance, your phone could ring at 11 o’clock at night, because they’ve seen a bug. Moreover, if the rent is run-down over time, the bill for maintenance may be continuous. You could also be chasing down your rent with some tenants every month.
Which happens if the rental price declines but your mortgage stays the same? Or what if taxes on land go up but you’re not in a position to raise the rent? You’re going to want to weigh all the possibilities, and make sure you’ve got some wiggle room with the rent you owe. Don’t cut it too close to get you in a bind. Therefore, financing the second property can pose additional hurdles before a bank can help with financing.
As with any project, make sure that the pros and cons are thoroughly researched. Find a property that will be low maintenance and ensure that prospective tenants are screened thoroughly!