Reply to New to being a landlord - what haven't I thought about/considered?

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[quote=Anonymous]I've rented out a single family home in DC for 20 years that we previously lived in.

Getting the required licenses was a bit of a hassle in DC.

Mostly I've had great tenants including one that I went years from having to do anything aside from depositing the rent every month.

I also had to evict a tenant which took about 6 months and in net cost me about $15K in lost rent and repairs - the eviction process in DC is absolutely ridiculous aided by a tenants rights office that basically tells tenants to file frivolous claims that they know aren't true to drag out the process.

Having said that I paid the mortgage off a couple of years ago - my rent was always only a bit above the mortgage so it was mostly cash flow neutral but I stupidly didn't think about two things - first a good portion of the mortgage (in DC at least it is about 30%) goes towards the taxes and property insurance but more importantly we are making a lot more money than we ever expected to make so at this point a significant portion of the rental income is now paid in DC and Federal taxes.

So we will mostly make money on the house when we sell which has more than doubled in value since we bought but of course we long ago lost the $500,000 Federal tax exemption on the sale.

So we will net some nice money over the life of the rental and the sale but I'm not really sure I'd do it again given where we landed financially.[/quote]

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