I had rented my home and moved out of country it worked fine for 5yrs..we payed of our mortgage of course we cut down on our expenses as much as possible..we paid off in less than 10yrs. We did that with our investment properties too, no mortgage on any.
Terrible advice. What’s it rent for, what’s the PITI, how much debt, how much is it worth, etc. there’s a lot of unanswered questions. Calling it a liability is nonsense. Real estate is THE BEST asset class to build wealth.
I like how they forget about the appreciation of the property, you don't have to make money on the renting income, it's going to go up. Now it's different question if it is worth the hassle 60 miles away and finding a good renter. Not being local is an issue, but many people make a lot of money from appreciation even if they wreck the place. I would probably rent it in this case since you already have the place, sell it if things don't work out, you can do that later.
@Josh Amazing. I’m so glad I didn’t sell my first house when my job relocated me one year after buying back in 2013. Time has given me more equity then the home was worth back then and is allowing me to invest more now
@Josh "...if you have the ability to cover losses..." That's the fork in the road. I would assume a healthy security deposit from the renter and a healthy rental emergency fund from the landlord today, would bring prosperity for the landlord in the future.
I believe Dave is a little to quick to tell people not to have rental property. For the average American building a rental portfolio is the best way to get out of the rat race. I respect Dave greatly but it seems like he intentionally tells people to take the less risky route “ no risk, no reward “.
Absolutely, if it's within one's means, you don't need to profit upfront, let the house pay for itself, home appreciation values will always be on the rise, especially with the epic decrease in inventory that's projected indefinitely.
Planning to buy another house in another town. Thinking of renting my current home. It's worth 230,000 5 bed 1.5 bath. In a town of 8,000. Could rent it for 1300-1400. I pay a mortgage of 850. Pretty much rebuilt home, fully remodeled, new AC, water heater appliances. Could probably maintain for 2000 a year could probably cash flow about 4,000 a year after all expenses. Owe 81,000 on it. With rent, appreciation of 5% as well as tenant paying principal think I could get a roi of about 11%. Not to mention tax deductions and depreciation. I'm not that experienced with real estate however so could be missing a few things in my calculations.
Where do you live? I passed up on some college students to rent to "working folks" and I'm regretting it... I would have been much better off renting by room than having these bums who are two grown adults, I mean baby I'm dealing with...
Higher education is quickly failing under its own weight (only reason it hadn't yet is bc me and you subsidize it with taxes) major colleges should be fine bc they make a ton of money of their own but, small colleges are closing daily.
I wouldn't. Remote learning was forced and I guarantee the amount of on campus living has drastically reduced. There's always a reason investors leave.
I'll tell you what with the way that times are going. I don't know about you holding on to a rental property. We're thinking the same thing. And to be honest with you. Millions upon millions are not paying rent. Do you know how difficult it is to get a renter out of your home? If you're going to rent your home you better do a month to month lease and have it legally stated if they do not pay rent within a certain amount of time. You get to padlock the place. Put it in writing. Month to month you don't pay you don't play.
I am certain that you could be arrested in many states for padlocking a renter out of their (your) home even if you have it in writing. Then what?? You have to get yourself out of jail and begin the legal eviction process. I had to do it once (take someone through the entire eviction process while they lived in my property rent-free) - cured me from any desire to be a ‘landlord’ in the future.
It's California, this is terrible advice. College town or not, DO NOT SELL that property if you can afford to move into something else. Get a management company, let them handle everything.
We have half acre home with two houses , this housing market is crazy in California, me and my hubby are 31 and 33 we hope to rent both our homes on our property and buy a bigger home for us and our 5 kids . Is that a smart choice
House market is crazy rn.. I know this was 2 yrs ago or so.. but can you give us a updated version cuz I believe the renting game is where it's at rn @Ramsey I rather rent it out and us that money as passive income but stack that passive income nd juss invest in more land.. am I correct or should I be put on game ? Seems simple right? Please explain the pros nd cons and why you say all this about each decision.. thanks
Don't sell that home. Keep the house, rent it. Of course you need to see if you can pay up mortgage/insurance/etc. if you have a low interest mortgage keep it if you can pay it off..if not rethink. I won't over react n sell it.
No wonder he fails in real estate. Never sell your house unless you have a big profit coming toward you. When someone sell their home they are only getting asking price. What happened to interest. When you buy a home, you pay principle and interest. You gotta think like a bank and get your principle and interest too. There is a right way and wrong way to sell a house. Taking advice blindly from someone advocating for the bank/lender and financial company is stupid. It will keep you poor and make them rich.
In hindsight, this was horrible advice. Real estate values have skyrocketed in the two years since this video. I like Ramsey's advice on living within your means, but that's about all I agree with him.
“If you declare with your mouth, “Jesus is Lord,” and believe in your heart that God raised him from the dead, you will be saved. For it is with your heart that you believe and are justified, and it is with your mouth that you profess your faith and are saved.” Romans 10:9-10 ❤️❤️❤️
I need to call in one day. I bought a house back in 2018 that was a flipper and I overpaid. Long story short it's now mid 2021 and I have been battling mold and termite issues since and I'm upside down on the loan. Also paying 50k in debt on 55k to 60k a year. Idk where to go with it all
@@eckankar7756 Lol! Call a realtor that pays a fee to Dave Ramsey for advertising? He just got done telling you that he was scammed by a flipper, and now you want to him to get scammed again. 😂
Sell or rent is actually an awesome question. What if it’s your first home and have equity of (100k at least) desirable location, stick built, upgrades, livable basement, brand new fenced yard, 1600 total sq ft on .2 acre. I want to rent it out, but have no money to put down on our next home plus some credit card debt. (Our meaning fiancé and 2 kids). We are kicking around the idea of using (HELOC 10% interest 🥴) Any advice would be greatly appreciated 🙂
Im in the same situation, 100k + equity. Nice, upcoming area, good credit, and decent income, just not much cash flow to start put down or invest. Im currently trying to learn the game
So I’ve been listening to more of Dave Ramsey and it sounds like it’s not a good idea to barrow against equality. Reason being is because he has never heard of a successful story about anyone doing that. Money down is the preferred method. Being responsible, paying off the house and making $250,000 a year is how these so called millionaires are doing it lol 😆.
Don’t buy a house and rent your current unless you have the down payment to not have the gap insurance it will eat any profit of your current home. I am doing the same thing I have a little less equity in my current home and after I looked into it I saved up for 17% down on my next house so I didn’t have to get the FHA loan there is an option to refinance an FHA loan but renting a house is a long term investment not a short term money maker. My plan is like a 25 year plan so I have multiple houses paid off by then but I am not making much profit at all if anything I’m close to taking lose trying to keep both considering the interest rates currently compared to when I purchased my first house.
My plan is to use all my houses as a line of credit to start bigger investments in apartments or a business. The houses making me money is really just luck of the housing market. For context this is just my opinion and what I’ve learned so far I’m not a millionaire or a financial advisor of any sorts just someone tired of being broke.
If I owe 67k and bought it for 92k but I am in 20k debt and the house been appraised to 310k as is should I sell or keep it ? Any suggestions been thinking real hard bout it
How about you run some numbers and see if leveraging a team is an option before you "know" either is a good option. You did this man wrong on this call.
I feel like they’re being negative. Yes it’s possible for downfalls but still there is a good chance you’ll win. Maybe Dave is working for Corporate Real Estate Companies now.
@@johnyracercat I cannot afford to do either right now. A lot of work would have to be done to it in order to rent it out. I can't afford those repairs. It's in another state from where I live. So I'm trying to sell it long distance. I have been under contract four times, and for various reasons the buyer keeps pulling out.
I’d recommend going to Ramsey solutions website, and find a smartvestor pro they trust in your area and talk more in depth. They will reach out as soon as you input your info and accept the terms.
Hey help me somebody....i have house paid off worth 140k my ither house worth 240 and i owe 30k also have 5 acres in the country only have 6k in bank how can i maje rvis work i really dont wanna go back to work...but got interview in September again got re take the test! Shoukd i pull equity out these houses and pay off the house and pur trailers on the 5 acres
