Rented out our second home

**bjl584** · 06-20-2012, 05:07 AM

So, your daughter is living there, but she doesn't work? So, is her roommate paying all of the rent and utilities? I don't understand how you have an extra $1300 a month.

How far away is this house from where you live now?

Is selling an option?

**Barclay** · 06-20-2012, 05:24 AM

My daughter just graduated from high school. We were going to allow her to live in the house with a roommate while she was in college full time. She doesn't have a job yet. Actually, she has NEVER had a job in her life. The home has been empty for a few months since we just bought another house and moved. She was going to move in around August.

But anyway, we have changed our minds and decided to rent it out to a family instead. They are paying rent and all of the utilities. They are moving in on Thursday.

So, I have an extra $1300 a month.

what to do with the extra cash???? What a nice problem to have.

**disneysteve** · 06-20-2012, 05:46 AM

Originally posted by Barclay View Post

decided to rent it out to a family instead. They are paying rent and all of the utilities. They are moving in on Thursday.

So, I have an extra $1300 a month.

what to do with the extra cash???? What a nice problem to have.

Do you own the home outright? If so, that's great. Is the $1,300 covering all of your costs? Also great.

Make sure that you have all of the necessary insurance coverage on the home including a nice big umbrella liability policy. Keep a nice cash reserve to cover any maintenance, repairs or damages to the property while it is rented.

Other than that, do you have any other debt that needs to be repaid? If not, are you putting at least 15% into your retirement accounts?

If everything else is taken care of, I'd say to stash a good chunk of this money into additional savings and do something to enjoy the rest of it. So maybe boost savings by $1,000 or so per month and take a couple hundred for fun - nice dinner out, show tickets, weekend getaways, whatever would be fun for the two of you.

**disneysteve** · 06-20-2012, 05:47 AM

Another question, though. Your daughter is now in college so where is she living? Is she at home with you?

**Barclay** · 06-20-2012, 05:53 AM

We have our finances straight so it really is just extra cash. I have another rental (my very first home that I never sold) so we know the ins and outs of rentals. That home has been rented out for nearly 8 years straight now to the same people. I don't think we could get that lucky on this one. I really just want to hold out for the market to recover and then we will sell it. The people asked for a 2 year lease and I was happy to oblige. Rents are really up in our area and housing prices are down. So, it's best to own homes and rent them out. Which is a switch for our area!!

My daughter can stay with us when she begins school in the fall or she can find a job and rent an apartment. I told her I wasn't co-signing unless she has a job. I offered her up our walkout basement....fully finished, full bath, bar, theater room, large walk in closet, huge flat screen tv...but my husband about fell out of his chair.

So, her options are stay upstairs in our spare bedroom or get a job and find her own apartment.

It's tough being 17 and looking for a job. Most places are requiring you to be 18. So, I do feel bad for her in a way.

Rented out our second home