Rent to own and Building Credit

[CENTURION]

Never understood why you would want to rent out a property that is fully paid off. Why not sell it, and then invest the $200k or however much it is worth? That would grow your net worth much quicker than collecting $800 a month in rent, paying property taxes, and dealing with the hassle of upkeep and tenants.

I always assumed landlords just put their properties on 30 year mortgages then pocketed the difference. Unless there is something I'm missing.

I see It has been explained but also consider the market in the time frame your in. Could be worth alot now, then close to nothing tomorrow. so renting can work or just sell it. But when you own, you have options.

[mrsleeve]

What do you mean by little SoCal? Also could you tell me more about living in Montana? Particularly career oppurtunites that don't involve tourism or petroleum. Thanks!

Ever see the south park episode where Token gets all the rich black celebeites to move to the quiet Mountain town of South park...... Yeah thats really not too far off from the reality of it.... Its happened all over the west not just western MT and my area, CO, UT, N ID, WA, OR, AZ the good parts of WY. If you want to live on the high plains you dont have as much to worry about, its not pretty there and windy so ....................... I am not even going to get into the Albertans and BCers coming down and doing the same thing

I live in a nice little town that has been subjected to the MASS Californian Exodus to places like Nor Cal that are not in CA, (IE better taxes (across the board), better gun laws, better car laws "cheaper" real estate, less population etc.. ) are the "Hip/In" place to by a second home, yet change the place they moved into the place they were trying to get away from. Oh But most important of all ITS PRETTY Here, and the pretty must be protected at all costs fuck all those people that have made a living in the woods on forest products for generations, and try to run the rail yard out of the town they have taken over that would not even exisit with the Great Northern railway. Oh yeah that was little more than a rail camp and formerly known as STUMP TOWN, oh yeah forgot we have a decent ski hill too and a national park not far off. I am not even a born and raised native of MT, I am just a local. Though we came here for what it was and were happy with the way things were, and while things will always change the Great CA exodus has netted this area with nothing but a bunch of people bitching about how its not like it was in CA, and changing this area into area into places like Tahoe, Jackson Hole, Vail, Where the rich and famous own everything and those that live locally and serve them their Latte have little chance to compete and have to fight over the scraps.

Unless you bought real estate pre2000, have a big chunk of cash, work out of the area, or OWN some type of business you cant afford to live here and have much. Most people I know that have a good job also have side jobs to make ends meet, others that work more mid level service type jobs have 3 of them, and we have plenty of retail and fast food openings, the county hospital is the largest employer and the local Toyota store is like the 5th largest employer in the county behind the Rail Road, the 2 remaining timber mills (used to have 10+ near by) and walmart.

On the west side of the state there is little oil and gas development, the Greenies ( mentioned above) and so on keep petitioning to block any thing of the sort anytime they try and do anything. Tourism is about the only business and by far the biggest business the west side of the state has since many of the timber mills, and mines are going away. We have a few tech firms based out of my area and other major population centers and there are niches to be filled. Mostly around here the big thing is firearms/gun parts manufacturing the last few years has seen a huge boom in that area.


To sum it up, you dont want to work in the tourism industry LOOK TO LIVE SOMEPLACE ELSE its all we have anymore. Or you need to have a good professional degree, (medical would be best), or be willing to work for peanuts as a environmental researcher, Be willing to work in the service sector for 9-12 bucks an hour x 3 jobs none with benefits because you will work 30 hours a week or less to avoid Obama Care, or are working for the local temp agency, Or consider the view part of your salary you will be fine on the employment front. Be willing to pay stupid rents, leave your dog at your parents house (you will not be able to rent someone form San Fans Vacy house it, though this requirement is getting better) and have to find a new rental before tourist season. Or pay stupid high purchase prices (for the local job market) because you are competing for the same home that someone from LA is going to buy as a Vacation or rental home and seems like a steal of a value, compared to their market....... Not to mention all the greedy locals that have their home for sale for 2.3 times what they paid for it in 1996 hoping some such idiot will buy it, most dont want to sell, they are just looking for a sucker.


Edit: drunk post

[Keith M]

Longest post I have ever seen from you RJ.

[kickinindian]

he speaks the truth i love outside of yosemite national park, in my little neighborhood we have 30 or so houses, 8 of which are occupied all year round. they dont clear for fire season, let their properties go into disrepair and just really makes the place feel like an expensive ghost town.

Ive just gone back to school to get out of the shitty loop of hotel/retail jobs that dont pay for shit.

also we just fought off a lady who wanted to make all of the sierra national forest from the south of yosemite national park to kings canyon national park, another national park to be mismanaged and let all the resources go to waste.

[Jon325i]

This is what I would do If I were you.
rent a room for cheap.
save your money for a down payment, escrow all that jazz.
finance a used cheap car for no more than 2 or 3 grand. pay it off within a few months.
use that credit card, get a second one. use it. pay it off at the end of the week or day.
repeat, repeat, repeat and in a year you'll be good to go. nice credit and money in the bank, maybe even consider a condo.
they're cheaper and you can pay those off fairly quickly if you grind. Buy another home, rent out your condo.
bam

This was (more or less) what I did. Once established with solid, long term employment I was renting a room for a while to keep overhead very low and save save save. I had all my debts paid off and maintained 2 credit cards which were used cautiously and I paid the balance off every month. If you do this you'll be surprised at how quickly your capital can build. As an alternative, put your funds a in bank money market account instead of savings to take advantage of a slightly higher interest rate while still having immediate access to funds without penalties. In time, you will have solid credit and money saved up for a down payment. When I applied for my first home loan my credit score was north of 800 which helped me get a very competitive interest rate on my loan.

This method is simple, easy to follow, and it works every time it is tried.


Jon